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HomeMy WebLinkAboutCouncil Workshop Minutes 05.26.2009MINUTES COUNCIL WORKSHOP MAY 26, 2009 6:30 P.M. COUNCIL CHAMBERS A Council Workshop was held in the Council Chambers and called to order by Mayor Ken Olson at 6:30 p.m. on May 26, 2009. COUNCIL MEMBERS PRESENT: _x Emelie Eaton _x Kate Hart _x Chuck Rodgers X Alex Wilkins Doug Poehls _x Mark Mace x Chuck Dickerson Norm Stamper OTHERS PRESENT: Sam Painter Mary Embleton Bill Sheridan Kurt Markegard James Caniglia Rick Musson Derek Yeager Jan Faught Public Input (three-minute limit): Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual speaking under Public Input is limited to three minutes. While all comments are welcome, the Council will not take action on any item not on the agenda. There was no public input. Laurel Volunteer Ambulance Service: • Appointment of Charles Crellin Ambulance Director Jan Faught introduced Charles Crellin, who recently completed his first year at MSU in Bozeman. The appointment will be on the June 2nd council agenda. Morrison-Maierle: • Sewer Rate Study Carl Anderson, Morrison-Maierle, distributed information regarding the wastewater rate study, and a copy is attached to these council workshop minutes. Carl presented an update on the wastewater rate study, which is a summary of the rate study and a recommendation for the council's consideration. The 2010 wastewater improvements project will be the Phase 2A improvements, which was already approved via council resolution. The total project cost of $6,142,000 includes the lift station, headworks, and adding to the activated sludge system. The council recently voted on accepting stimulus money for the project, which will increase the project costs by $150,000 because of Buy American provisions and a different wage rate that must be utilized during construction. There are additional costs to separate the project into two phases, as another set of documents will be needed from a bidding perspective, a second construction contract will need to be administered, and the claiming of the project will be separate. With the anticipated Council Workshop Minutes of May 26, 2009 additional costs associated with taking the stimulus money, the total project cost is $6.292 million for construction, engineering and other associated costs. It does not include the cost of financing. Funding sources include a $750,000 TSEP Grant and $550,000 in stimulus money, of which half is principal forgiveness and half is money at a reduced interest rate from 3.7 to 1.75 percent. Additional stimulus funding up to $750,000 may be available. Carl stated that $4,992,000 would be funded through the SRF loan at 3.75 percent. No funds will be used from the operating budget. The budgeting process includes a set aside for reserves for both loans, as SRF requires that one year's payment be set aside in a reserve account. The city will borrow the money to set aside for the loan requirements. Requirements for the SRF loan are that the city has a coverage ratio of 125 percent, which means the city has to collect revenue equal to 125 percent of the annual payment. Carl stated that operation and maintenance is estimated to increase with the Phase 2A project. In 20 years, it could increase by $120,000 a year, with an $80,000 increase for the first five years. Assumptions included in the determination of the recommended rate structure also include: the February 2009 loan made to the Storm Water Fund, with the repayment schedule as per Resolution No. R09-15; the street right-of-way rental fee starting in 2009; operation and maintenance costs will inflate approximately 3 percent per year; city growth will continue at approximately 1.55 percent; maintains funds already set aside to be used for the 8t}' Avenue sewer project; and assumes no change to the volume charge. The city has a base rate and a volume charge, and the volume charge is relatively high. The sewer volume charge was not changed with the study done five years ago, and Carl recommends the same thing now. On July 0, the fifth rate increase of a five-year plan will go into effect and raise the rates by 18 or 19 percent to get to the level projected five years ago. Carl presented two options for the council's consideration. The first option assumes the City of Laurel will adopt the revised Equivalent Meter Factors, as recommended by AWWA and SRF Uniform Application. The second option is to use the currently approved City of Laurel Equivalent Meter Factors. The first option would leave the base rate alone and only change the Equivalent Meter Table that is calculated and used for larger size meters. Since everything is related back to an Equivalent Dwelling Unit (EDU), or a 3/4-inch tap, a 2-inch tap under the current rate structure is four times that of a 3/- inch tap. Carl gave an explanation of the chart, the size and the number of meters in 2009, the projected meters in 2010, and the current meter factor. Carl proposed that the city change the EDU calculations to industry standard. The American Water Works Association recommends a different EDU table than what the city currently has for Equivalent Dwelling Unit factor table. It is also the same one that the SRF program recommends. For the 2-inch meter size, instead of an equivalent meter factor of 4, the proposed meter factor is 7.14. This essentially charges more for the larger meters to make them pay their fair share. The proposed meter factor is based upon the area of the opening, and it is all equated back by area to a'/-inch meter size or opening size. It is set up to make users pay their fair share for the ability to be served with that size of meter. Under the existing rate structure with the Equivalent Dwelling Units, the projected FY2010 WW Base Rate Revenues total is $917,405. The projected FY2010 WW Base Rate Revenues with the revised EDU is $1,044,729, for a difference of $127,324. With this, the base rate did not increase, but the equivalent meter table for the larger meters would increase. 2 Council Workshop Minutes of May 26, 2009 Option 2 would be to leave the Equivalent Dwelling Unit table the same. This anticipates a 5 percent rate increase in the base rate to be able to fund the wastewater project. Both options assume an annual O&M cost increase inflated at 3 percent per year, growth in the city at 1.55 percent a year, and small cost of living rate increases. Carl summarized the actual rates for the Phase 2A project, for a total cost of $6,142,000 and the $150,000 increase to meet the stimulus requirements. Funding includes the $750,000 TSEP Grant, the $275,000 in principal forgiveness from the stimulus funds, the $275,000 loan at 1.75 percent, and the $4,992,000 SRF Loan at 3.75 percent. The current base rate of $21.57 will increase to $25.57 on July 1 t. Option A has a zero percent rate increase for 2010-2011, and 3 percent beginning in 2011- 2012. Option B has a 5 percent rate increase in 2010-2011 and 3 percent increases after that. The recommendation from Morrison-Maierle and city staff is to go with the Equivalent Dwelling Unit change and not increase the base rate, which is Option A. Morrison-Maierle is in the process of reviewing the water rates and will make a presentation and recommendation to the council soon. Carl recommended that, since the Equivalent Dwelling Unit change would affect both water and wastewater, it would be acceptable to wait until the water study is done and then to implement the rate increases at the same time. There was confusion and discussion regarding how to go forward. Two resolutions, one for Option A and one for Option B, will be added to the June 2nd agenda for the council's consideration. Public Works Doartment_ • Small Service Contract with Jares Fence to install fence around the playground at Nutting Park Kurt Markegard stated that some playground equipment was donated to the city two years ago. When New Life Four-Square Church contacted him recently about doing something for the community, Kurt suggested that the church coordinate the installation of the playground equipment in Nutting Park. Volunteer labor and donations for concrete, etc., have facilitated the installation of the equipment. Funding for the fencing was appropriated in the current budget. Since the cost is under $5,000, Mayor Olson can sign the Small Service Contract with Jares Fence. • Resolution - Small Service Contract with Stevens Brothers Mechanical for installation of a methane gas pump at the Wastewater Treatment Plant Kurt explained the need for a Small Service Contract with Stevens Brothers Mechanical for installation of a methane gas pump at the Wastewater Treatment Plant. The sewer plant is required to have two systems for everything in case one system breaks down. One methane gas pump has been leaking water and needs to be replaced. Plant employees tried to install the pump, but it was determined that a contractor needed to do the installation. The resolution and contract will be on the June 2nd council agenda. • Laurel School District - Permission to install irrigation lines in Thomson Park Kurt has been working with the school district on the new football field. Kurt explained that an existing water line serviced the football and soccer fields and there is a valve in the parking lot that runs over to the football field with the line going through Thomson Park. The school district recently tried to find the line in order to hook onto it and run it to the soccer field to run the sprinkler system. Since they have not been able to find the water line or where it goes into the football field, the school 3 Council Workshop Minutes of May 26, 2009 has asked to return to the valve and dig a new water line all the way from the valve in the park over to the football field and down to the soccer field. When they run water lines to the new football field, they will go in off Pennsylvania. Staff cannot give permission to run water lines in city parks, as that is a council decision. Scott Reiter attended this meeting to present the school's ideas of how to get water to the soccer field. Scott Reiter stated that there are three options. One option is using the valve located in Thomson Park. They dug ten feet deep but have not found any trace of the line. Retired city and school employees were contacted, but no one knows where the line is located. The option is to come back to the valve where they know the line is and put a new line in, either straight over by the sidewalk down and over to the corner where the sprinkler valves need to be. Another option would be to come from 60' Street, as there is an existing valve there that was used to flood the park. The line could go through the soccer field and up. The other option is to come from the main supplies of Graff School, but that would cut across asphalt, parking lots, and playgrounds. That is not an attractive idea. Scott asked to work with Kurt to come up with the best idea for the city and the school. There was further discussion regarding the most cost-effective option, the timeframe for a decision, the proposed handicapped parking lot in Thomson Park, asking former city employees for information regarding the water line, the preferences to resolve the issue, and the need for council direction. Mayor Olson stated the need for an agreement regarding liability if the school district hits something on the park property. He also mentioned that, when the school first came to the city regarding handicapped parking spaces, it was determined that the city would be willing to give that parcel to the school district. It was brought before the council at that time that the city would in return like to see some trees put in bordering that parking lot. This item would need to be included in the discussion. Kurt and Scott will review the options, and the Public Works Department will have a recommendation for the council by next Tuesday. Mayor Olson stated that a motion for the staffs recommendation would be on the June 2nd council agenda. Clerk/Treasurer: • Resolution -- Budget amendment for the TIFD Fund Mary Embleton explained the budget amendment resolution for the increase in appropriations in the Tax Increment Fund for the storm water project. The project was originally estimated at $1.2 million. The council already passed the resolution approving the loan of $1.4 million being incurred by the TIF District Fund. The budget amendment increases the appropriation or the expenditure by $145,000 to get the $1.4 million total for the project. The revenue increase would be the offsetting loan proceeds that will total $1.4 million. Those will equal each other out and get the project to the appropriations level as to what it cost. The resolution will be on the June 2°d council agenda. Fire Department: • Resolutions -- Fire District contracts Bill Sheridan stated that the fire department is dealing with resolutions involving fire districts and contracts, which provide funding. The fire department takes care of a lot of space around the city limits, and it has been difficult to find people to talk to within the districts or they are shy to sign or even consider contracts. The city's full-time fire chief is working to make sure that there are representatives from each fire district, and he is providing some pressure that either governments or organizations require districts to have people represent the districts. He is contacting the districts to 4 Council Workshop Minutes of May 26, 2009 establish contracts that we can respond to and take advantage of in the future. The reason for this is to ensure that the city has sufficient funding to operate the fire department and to build a new fire station. Derek could not be here tonight, but he will be available to discuss the matter soon. Planning Board: • Ordinance - Amending 17.20.010 of the Laurel Municipal Code modifying allowance of auction houses (excluding livestock) in the Central Business District and Community Commercial through Special Review. James Caniglia stated that the issue, which stemmed from a resident who wanted to put in an auction house at the old Laurel Ford building, moved forward from the Planning Board. The Planning Board reviewed the issue of allowing auction houses in the Central Business District. James and the Planning Board had concerns, including if auction houses are the type of business desired in the downtown. An auction house might only be open one day a week, where ideally downtown businesses should be open at least five days a week. James thinks that is the main reason auction houses have not been allowed there. There are concerns about possible debris and items sitting in the alley. The Planning Board decided to recommend allowing auction houses in the Central Business District and Community Commercial because requirements could be addressed through a special review process. The special review process would give leeway on how it can be done or if a particular building does not seem appropriate for an auction house. The Planning Board and the council could say no if they chose to do so. The Planning Board decided that it was a good thing and that downtown businesses are needed, regardless if they are only open one day a week or not. An auction house would bring in people on the nights it is open, which would also be good for other downtown businesses. There was discussion regarding the property, parking issues, and the possible accumulation of items at the location of an auction house. Mayor Olson stated that issues could be discussed further through the ordinance process, which includes the first reading, public hearing, and second reading. The first reading of the ordinance will be on the June 2"d council agenda. Mayor Olson asked Sergeant Mark Guy to present information regarding a grant opportunity for the Laurel Police Department. Sergeant Guy explained that Monica Salo found a $10,380 non-match grant that is part of the stimulus package. This kind of money is usually available from the Drug Task Force, but it was disseminated out so smaller departments could receive some of it. The grant is for equipment and can be used in one lump sum or over the next four years. The police department would like to purchase a shooting simulator, which would allow officers the opportunity to practice firearms. Using a simulator could be done in any weather and at any time of the day or night. Sergeant Guy stated that approval is needed from the mayor and council before the grant application is submitted. The grant was supposed to expire on May 18'', but there was so little time and notice that no departments applied, so the deadline was extended. With the council's approval, the grant application would be submitted on June 17th with electronic signatures from the chief and the mayor. A simulator costs from $8,000 to $50,000, and the department found a high quality simulator for almost $10,000. The portable simulator could be located at the police department, or wherever it needs to be used. 5 Council Workshop Minutes of May 26, 2009 Mayor Olson stated that a resolution allowing the mayor to sign the document will be on the June 2nd council agenda. Sergeant Guy stated that the information would be available for public review and comment by the end of this week. Chief Administrative Officer: • Staffing proposal Bill Sheridan spoke regarding a staffing proposal and distributed information regarding hiring three new full-time positions. The first position is for a Public Works Maintenance Superintendent. The second position is a Maintenance Worker II, who would work in the parks and cemetery at 50 percent, in the streets at 40 percent, and in solid waste at 10 percent. The third individual would also be a Maintenance Worker II, who would provide 10 percent in parks, 10 percent in cemetery work, 40 percent in street maintenance, and 40 percent in solid waste. Bill explained the need for the three positions. The city definitely needs a superintendent at the shop. This position was filled and budgeted for many years, but it has not been filled for over a year. The position was budgeted in the current budget, and will be budgeted next year. Two additional Maintenance Workers II are needed to work in the cemetery, parks, streets, and solid waste. Bill explained the funding for the positions. The Maintenance Superintendent position has been funded each year. The rental fee established by assessing the water and sewer mains located in city streets can also be applied to fund this position. Regarding the two Maintenance Worker II positions, the Street Maintenance Fund, the Solid Waste Fund and new revenues from the Veterans' Cemetery can fund the positions. The General Fund can afford portions of the two new positions from the revenues from the street rental fee. Emelie commented that this is a direct reflection of all the growth this city is going through and all of the positive actions that are starting this summer. She cannot think of a department that needs more people sooner than this department. Mayor Olson stated that the Maintenance Superintendent position would be posted on Wednesday, and the other two positions will be posted soon. Mayor Olson thanked Bill and Mary for their work on this issue. Executive Review: • Resolution No. R09-60: Resolution to annex the entire 60 feet street right-of-way adjacent to 2057 East Maryland Lane that is contiguous to the City of Laurel and owned by Yellowstone County, Montana. (Vote delayed to June 2, 2009) Mayor Olson, James Caniglia, Mary Embleton, Sam Painter, Bill Sheridan, Norm Stamper, and Chuck Dickerson attended today's meeting with the County Commissioners regarding the issues at 2057 East Maryland Lane. The three County Commissioners, representatives of the County Public Works Department and the Attorney's Office, and the property owners also attended the meeting. At the meeting, the County stated that it had been erroneous with its RSID assessment for the property at 2057 East Maryland Lane. The property owners can request a reimbursement of the assessment. 6 Council Workshop Minutes of May 26, 2009 The County Commissioners also stated that it is the council's prerogative to determine the outcome of the annexation issue. Bill Sheridan stated that the property owners now understand that they must be in the city, and that they must pay for street maintenance, water, police, fire, ambulance, etc, in the city. If the property owners tried to de-annex from the city and the city disconnected their water service, they would be in violation of the law. They have received the blunt direction and seem to be willing to accept the annexation of their property and the city's provision of services. Bill stated that this might be the end of the differences of opinion the city has had with these property owners. Chuck Dickerson stated that a Memorandum of Understanding would be drawn up between the city and the county, that it would not be best to annex the full 60-feet of the street right-of-way, and that the resolution could be voted down on June 2°d. The county and city would then enter an agreement for maintenance of certain roads. The RSID would be removed from the property owner's taxes. Mayor Olson stated that, regardless of the council's decision about the annexation of the street right- of-way at next week's council meeting, the double taxation issue is moot. The County will remove the RSID from the property at 2057 East Maryland Lane even if the council does not annex the street. Mayor Olson spoke regarding the need for the City of Laurel and Yellowstone County to address the 12'h Street issues, which share some commonality with the patchwork of county and city residences in this area. A Memorandum of Understanding is needed to address issues resulting from 2003 legislation regarding annexation of half streets. • Appointments: o Public Works Committee - Chuck Dickerson (replace Norm Stamper) Mayor Olson explained that Chuck Dickerson will replace Norm Stamper on the Public Works Committee, as Norm is unable to continue serving on the committee. o Health Insurance Committee Mayor Olson stated that the committee will include two representatives from Local 303, Local 316, the City of Laurel, and the City Council. The appointments will be on the June 2nd council agenda. • Special Events Permit - 4t' of July event Mayor Olson explained that the Chamber of Commerce will submit a special events permit for the 4"' of July events. The Chamber will coordinate the non-profit and for profit vendors, which will free up the city's manpower during this event. • Council Issues: o Tree Board hosting tree event in Laurel (Emelie Eaton) Emelie spoke regarding hosting the 2009 Eastern Montana Community Forestry Conference in Laurel on October 861 and 9`h. Three items for consideration include: if the council is in support of this event so it could be advertised as being sponsored formally by the city council; authorization for funding from the public works budget; and seed money in the amount of $1,000 for the conference. Mary Embleton explained that the seed money could be treated like a sponsorship fee or contributions to other causes, such as Helping Hands, the Laurel Senior Center, and the Centennial Committee. The seed money would need to go to the Tree Board. 7 Council Workshop Minutes of May 26, 2009 Mayor Olson stated that there did not seem to be opposition to this type of event going forward and the funding will be included in the budget session. o Street Maintenance Plan (Mark Mace) Mark Mace stated that the Public Works Committee has discussed the need for a street maintenance plan to go forward into the future. This would include sweeping districts, snow emergency routes, and snow removal districts. Kurt spoke regarding this summer's street maintenance project. Hardrives Construction was awarded the bid for the project. The contract documents should be completed soon, and Chad Hanson is reviewing the bonding requirements at this time. Mayor Olson will then sign the contract, and the project will go forward. Kurt stated that, when he became the Public Works Director, the city did not have a street maintenance plan. At the direction of Mayor Olson and Bill Sheridan, Kurt was asked to formulate a plan using the existing pavement condition index data for all city streets that ME&A previously prepared. The data needs to be implemented into a plan so the council can determine funding for needed projects. Kurt will continue to work on the plan, which would be a great asset for the city. o CPR training for staff (Chuck Dickerson) Chuck asked regarding the status of providing CPR training for staff. Ambulance Director Faught recently informed him that ambulance staff could provide the training to the city employees. Bill Sheridan stated that every employee needs to be trained properly, and he will ask Jan to help with this. o Stop light intervals on Main Street (Mark Mace) Mark suggested that a traffic study should be done to provide better intervals for the traffic signal at Main Street and South 1" Avenue. There was discussion regarding the four-way stop, safety issues, the increased number of vehicles turning onto Railroad Avenue to go to Wal-Mart, the need to contact MDT, and concerns regarding the potholes in the underpass. Mayor Olson stated that MDT will be contacted. Other items Chuck Rodgers stated that the Memorial Day services were well attended, and he heard comments regarding the dandelions and lack of water at the cemetery. There were also comments regarding the improvements to the veterans' section of the Laurel cemetery. Chuck Dickerson mentioned that the tree planted south of the swimming pool looks healthy this year. Review of draft council agenda for June 2 2009 Two resolutions regarding the Morrison-Maierle wastewater study proposals will be added to the council agenda. An agenda item will be added regarding staffs recommendation for the school district's water line to the soccer field. A resolution for the police department grant will be added to the agenda. The resolution for the fire contract with the Yellowstone Boys and Girls Ranch will be removed and placed on the June 16`x' council agenda. Bill asked that the three new positions be considered on the June 2"d council agenda. Mayor Olson stated that certainly with the adoption of the final budget, he would use that as criteria to go forward with the hiring of the additional employees. Attendance at the June 2, 2009 council meeting 8 Council Workshop Minutes of May 26, 2009 All present will attend. Announcements Chuck Dickerson stated that last Friday's Rock the Block event in the Town Square was a success. Four more events are planned this summer. Emelie Eaton attended the Lions Club meeting last Tuesday evening. She stated that the Tree Board has looked at pursuing a sizeable grant for 2009-2010. Initially, the Tree Board wanted to use the money, if awarded, for tree trimming and cleanup at Riverside Park. The Tree Board was informed that the DNRC would look more favorably on the application if they wanted to plant some trees. Since the Lions Club has worked with the Public Works Department for several years in improvements in Lions Park, Emelie attended their meeting to find out their plans. If the Tree Board still wants to pursue this grant, she thinks there could be some interesting partnerships between the Tree Board, the Lions Club, and several organizations throughout the community. Mayor Olson spoke regarding the responsibility the city took when it became a Tree City. He also stated that concerns will be addressed at the cemetery. The council workshop adjourned at 8:35 p.m. Respectfully submitted, Cindy Allen Council Secretary NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for the listed workshop agenda items. 9 City of Laurel Wastewater Rate Study May 26, 2009 Council Workshop Assumptions Included in Determination of Recommended Rate Structure: The 2010 wastewater improvements project will be the Phase 2A Improvements TSEP project as defined in the 2009 Facility Plan Update (Table 9-2): a. Replace Elm Lift Station b. Rehabilitate Village Lift Station c. Grit Removal and Headworks Facility Improvements d. Plant Water Systems Improvements e. Expand the Existing RBC System with Activated Sludge f. Cost assuming spring 2010 Construction = $6,142,000 g. Added $150,000 to project cost for additional costs which will be incurred to administer ARRA stimulus funds and comply with ARRA requirements h. Total Phase 2A assumed cost = $6,292,000 2. Phase 2A Improvements funding: a. $750,000 TSEP Grant b. $550,000 Stimulus Funds from SRF i. Approximately 1/2 is principal forgiveness ii. Approximately 50% at reduced interest rate of 1.75% c. $4,992,000 to be funded with SRF loan at 3.75% d. No funds will be used from the operating budget e. Budgeting included setting aside the required reserves for both loans (equal to one year's payment) f. Budgeting included the required 125% coverage ratio 3. Operation and Maintenance Increase due to Phase 2A project a. $80,000 assumed for first 5 years b. Up to $120,000 in 20 years 4. Includes February, 2009 loan made to storm water fund, with repayment schedule as per Resolution No. R09-15 5. Includes Street Right of Way Rental Fee starting in 2009 6. Assumes Operation and Maintenance costs will inflate approximately 3%/year 7. Assumes City growth will continue at approximately 1.55%, as projected in recent planning documents 8. Maintains funds already set aside to be used for 8'h Avenue Sewer Project 9. Assumes no change to the volume charge 10. Two Options: a. Assumes the City of Laurel will adopt revised Equivalent Meter Factors, as recommended by AWWA and SRF Uniform Application b. Using currently approved City of Laurel Equivalent Meter Factors VA0703\011.12 -Rate Studles\Update WW Rate Study\correspondence\Rate assumptions 052509.docx CITY OF LAUREL WASTEWATER RATE STUDY MAY 26, 2009 IMPACT OF PROPOSED REVISIONS TO METER FACTORS METER SIZE METERS 2009 PROJECTED 2010 METERS" CURRENT METER FACTORS FY2010 WW BASE RATES PROJECTED FY2010 WW BASE RATE REVENUES PROPOSED METER FACTORS' FY2010 WW BASE RATES PROJECTED FY2010 WW BASE RATE REVENUES 518 to 3144nch* 2,545 2,584 1.00 $25.57 $792,875 1.00 $25.57 $792,875 1-Inch 67 68 1.25 $31.96 $26,079 1.79 $45.77 $37,349 1114-inch 1 1 1.85 $47.30 $568 2.78 $71.08 $853 11124nch 20 20 2.50 $63.93 $15,343 4.00 $102.28 $24,547 2-inch 21 21 4.00 $102.28 $25,775 7.14 $182.57 $46,008 21124nch 0 0 6.25 $159.81 $0 11.16 $285.36 $0 3-inch 10 10 7.50 $191.78 $23,014 16.00 $409.12 $49,094 flinch 0 0 12.50 $319.63 $0 28.57 $730.53 $0 6-inch 2 2 25.00 $639.25 $15,342 64.29 $1,643.90 $39,453 84nch 0 0 40.00 $1,022.80 $0 113.78 $2,909.35 $0 10-inch 1 1 60.00 $1,534.20 $18,410 177.78 $4,545.83 $54,550 12-inch 0 0 80.00 $2,045.60 $0 256.00 $6,545.92 $0 14-inch 0 0 100.00 $2,557.00 $0 348.00 $8,898.36 $0 TOTAL 2,667 2,707 $917,405 $1,044,729 Difference= $127,324 *314inch meter = 1 equivalent meter **Number of meters extrapolated assuming 1.55% growth per year. *** As calculated based on equip area; used by AWWA and SRF Uniform Application City of Laurel Wastewater Rate Impact Summary May 26, 2009 Phase 2A Funding ARRUmntinnc Phase 2A roject cost' $ 6,142,000 Increase to meet ARRA requirements $ 150,000 Total roject cost $ 6,292,000 TSEP Grant $ 750,000 SRF Stimulus Funds: Principal For iveness $ 275,000 Loan at 1.75% $ 275,000 City Cash Contribution $ - SRF Loan at 3.75% $ 4,992,000 Current Rates Current Monthl y Base WW Rate $ 21.57 2009-2010 App roved Rate $ 25.57 Proposed Future Rate Increases - Ontinn A Proposed 2010-2011 rate increase 0% Proposed annual rate increase, beginning 2011-2012 3% Resulting Base Rates per Equivalent Meter: 2010-2011 $ 25.57 2011-2012 $ 26.34 2012-2013 $ 27.13 2013--2014 $ 27.94 Proposed Future Rate Increases - Option R Proposed 2010-2011 rate increase 5% Proposed annual rate increase, beginning 2011-2012 3% Resulting Base Rates per Equivalent Meter: 2010-2011 $ 26.85 2011-2012 $ 27.65 2012-2013 $ 28.48 2013-2014 $ 29.34 1. Phase 2A Project as defined in the 2009 Laurel Wastewater Facilities Plan Update. 2. 2009 Approved Rate was approved in Resolution R04-117 in November 2004. Option A: Increase Equivalent Meter Factors to match those recommended by AWWA and used in SRF Uniform Application Option B: Use current Equivalent Meters Factors used by the City of Laurel See May 26, 2009 explanation of other assumptions included in rate recommendation VA0701011.12 -Rate Studies\Update WW Rate Study\correspondence\Summary 5-26-095/26/2009