HomeMy WebLinkAbout01/12/1993City Council Meeting
Tuesday, January 12, 1993 - 7:00 PM
City Staff
Page 2
Present: John Dunn, City Administrative Officer, Ken Hampian, Assistant City
Administrative Officer; Jeff Jorgensen, City Attorney; Diane Gladwell,
City Clerk; Bill Staffer, Finance Director, Unda Aspirion, Revenue
Manager
There were no public comments.
PUBLIC COMMENT PERIOD
BUSINESS ITEM
1. WATER RATE STRUCTURE REVIEW (File No. 516)
Council considered a new water rate structure that eliminates minimum charges and retains the
current two tier commodity charge structure.
Bill Steller. Finance Director reviewed the report, stating that this review addressed only the structure
of the water rates, not the establishment of the rates themselves.
Council discussed issues relating to 5/80 and V water meters, the charge for the water meters
(commonly referred to as a minimum charge) and a 2- tiered structure versus a 3 or 4- tiered structure.
Impacts on commercial customers were discussed and the perception that residential users subsidize
commercial rates.
James Arndt. 1080 Bluebell Way, liked the concept of eliminating the current practice of charging
more for a 10 water meter and liked the concept of a basic charge.
Philip Johnson, 699 Patricia Drive, concurred with the previous speaker and stated he liked the 2-
tiered structure and the inclusion of a basic charge.
Lance Evan s. representing the Chamber of Commerce, stated that removing the basic charge would
result in higher rates. He stated that businesses did not waste water but were subject to the highest
rate in the current rate structure. He requested the Council have a Study Session to forge a
consensus.
Brett Cross. 1217 Mariners Cove, spoke in favor of removing separate rates for the V meter charge,
providing more tiers in the water rate structure, and separate rates for commercial users because they
provide a higher value to the community.
Carla Sanders. San Luis Obispo, supported the recommended structure and stated that it rewarded
conservation.
Council discussed issues relating to a 3 -tiered structure with commercial separated from residential
and the resulting perception that residential customers were subsidizing commercial customers.
Issues relating to minimum charges, the driving factors behind water acquisition, and equity issues
relating to water users. Issues relating to a ready - to-serve charge and recognition of the infrastructure
expense to provide water distribution treatment facilities were discussed.
City Council Meeting Page 3
Tuesday, January 12, 1993 - 7:00 PM
' Council considered subjects pertaining to commercial users, vacant buildings, impacts on
conservation, and a targeted mid-range use.
Moved by Settle /Pinard to eliminate ready - to-serve minimum service charges; motion carried (41,
Council Member Rappa voting no).
Moved by Settle / Roaiman to draft a three -tiered rate structure treating residential and non - residential
customers the same; motion carried (5-0).
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Upon suggestion from Bill Staller. Finance Director, Council reached consensus to construct the first
tier at the 0-5 unit level, the second tier at the 6-12 unit level, and the third tier at 13 unit and above
level.
Jim Arndt. 1080 Bluebell Way, requested that the bills show the calculation on them to eliminate
confusion.
COMMUNICATIONS
COMMA. Vice -Mayor Roalman reported on the last Water Resource Advisory Committee Meeting
and the Issue relating to airport area water acquisition by the County. CEOUA review for the eleven
new water purveyors allowed the City an opportunity to have Input into the decision. The Board of
Supervisors discussed the contracts and continued the item to February to give their purveyors a
chance to refine their contracts. This also allowed the City additional opportunity to comment on the
contracts. Representation from the City in this subject was discussed with Arnold Jonas designated
as the staff representative and Council member designation to be discussed on January 19, 1993
when the entire subject would be presented to Council.
Council Member Settle requested that the reporting of the COG impacts be submitted in writing to
allow Council to track the issues easier.
9:10 PM Mayor Pinard declared a recess; Council convened in Closed Session to discuss property
negotiations.
10:30 PM Council reconvened to Open Session; all Council Members present, and reported that no
action had been taken.
10:31 PM, there being no further business to come before the Council, Mayor Pinard adjourned the
meeting to date certain January 19, 1993 at 7:00 PM.
APPROVED BY COUNCIL 2/16/93
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ne R. Gladw , City Clerk