CITY COMMISSION AGENDA ITEM

Department:	Utilities		Commission Meeting Date: August 1, 2017
Staff Contact:	Beth Krishtalka
Recommendations/Options/Action Requested:
Adopt Ordinance No. 9375 on first reading.
Executive Summary:		Ordinance 9375 amends identified City Code Sections to establish 2018 water and sewer rates and a five-year schedule (2018 through 2022) of system development charges. Code Section 19-318 is concurrently amended to reflect the available low-income guidelines (110% of the Federal poverty level) for low-income, elderly person eligibility for reduced water and sewer charges. The proposed 2018 rates provide an 8% increase in revenues, with 4% of such increase to be applied to the new Wakarusa River Wastewater Treatment Plant operations, to increased debt payments for prior projects and to raw water cost increases. The other 4% of revenue increase supports the 2018 – 2022 Capital Improvement Program, drivers of which include: · Infrastructure projects to sustain system integrity and address deferred maintenance · Relocations of utility infrastructure as needed for various road projects · Regulatory mandates and commitments, including inflow and infiltration and bio-nutrient removal · System and technology enhancements for improved efficiency, conservation and customer service, including Advanced Metering Infrastructure. AMI deliverables include tools for consumers to manage personal consumption, increased accuracy and details regarding metered water use, and systemwide data regarding water quantity and quality as it moves throughout the citywide distribution system (see AMI Assessment Benefits). The benefits of this project are expected to result in a payback timeline of 12 years or less.   Background: On November 8, 2016 and June 13, 2017, staff provided City Commission with various detailed information regarding proposed rates, including an overview of recommended water and sewer rates and system development charges for the five-year period beginning 2018, including a new irrigation class, based on rate model factors such as capital infrastructure program needs, community growth assumptions, customer accounts and capital financing costs.
Strategic Goal Area:		Innovative Infrastructure and Asset Management Sound Fiscal Stewardship Core Services
Fiscal Impact (Amount/Source):		The fiscal impact to the City will be increases in revenue commensurate with appropriate costs of service based on customer usage and applicable rate model factors.
Attachments:		Ordinance No. 9375 AMI Assessment Benefits

Reviewed By: (for CMO use only)

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