HomeMy WebLinkAbout2015-03-09 City Council Minutes Approved City Council Study Session Minutes— March 9, 2015
At approximately 7:00 p.m. Mayor Laurie Gere called the Anacortes City Council study session of March
9, 2015 to order. Roll call found present City Councilmembers Eric Johnson, Ryan Walters, Erica Pickett,
Brad Adams, Liz Lovelett and John Archibald. Matt Miller was absent.
School Zone Speed Reduction at High School
City Engineer Eric Shjarback presented draft Ordinance 2945 which would revise AMC Chapter 10.08.020
to reduce the speed limit on several streets in the vicinity of Anacortes High School to 20 mph to match the
other school zones in the city. Mr. Shjarback said that one additional small portion of J Avenue would be
added to the final ordinance. He advised that Anacortes School District#103 Superintendent Dr. Mark
Wenzel and Anacortes High School Principal Jon Ronngren supported the change. Mr. Shjarback
described other safety improvements the mayor had already approved for the intersection of 17th Street
and K Avenue including a new four-way stop at that intersection, additional yellow curbing on K Avenue to
increase sight distance, and additional street lighting.
Mr. Archibald supported early public education about the changes. Mr. Walters urged additional community
education about the state law requiring drivers to stop for pedestrians at intersections. Mr.Adams asked
staff to evaluate other intersections in school zones as potential four-way stops. Councilmembers
discussed whether 7 a.m. to 4 p.m. was the appropriate time for the 20 mph limit to be in effect given the
number of afternoon, evening and weekend events at the high school. They considered sending the
ordinance back to the Traffic Safety Committee for study of that question. Police Chief Bonnie Bowers
reminded that construction of the new high school over the next three years would alter traffic patterns in
the area and that the eventual permanent entrances and traffic patterns could be different from present.
Mr. Adams suggested bringing the ordinance back to Council for action as drafted and addressing
alterations as required in the future.
Wholesale Water Rate Study
Public Works Director Fred Buckenmeyer summarized that Anacortes runs a regional water system for six
wholesale and industrial customers as well as a retail water system within the city. He explained that the
evening's presentation concerned the regional rates only. Mr. Buckenmeyer reported that staff had been
working for several months with consultant FCS Group to evaluate the current wholesale water rate
methodology and develop alternatives for both the operating and the capital components of the rates. He
said the evening's presentation had been shared with the regional system customers and that some of
those customers had already expressed support for modifying the current methodology. He advised that
staff would conduct a series of meetings with the regional customers to obtain their feedback before
bringing a rate ordinance back to Council for action. Mr. Buckenmeyer introduced Gordon Wilson, Project
Manager from FCS Group.
Mr. Wilson shared his presentation from the evening's Council packet, presenting several alternative rate
methodologies for operating and capital charges, demonstrating their effects, and concluding with
recommendations for rate methodology revisions. He advised that the purpose of the study was to achieve
greater simplicity, stability, equity and predictability in the rates over time. Mr. Wilson reviewed the current
rate methodology and the annual year end reconciliation that can result in substantial additional charges to
customers depending on actual usage which is volatile, particularly for the two largest regional customers,
the refineries. He explained that greater rate stability is achieved by models which base rates on actual
consumption from prior periods rather than on estimated usage. Mr. Wilson then presented three
alternative methodologies for calculating operating rates for wholesale customers including both the initial
rates and the year end reconciliation. He recommended Alternative 3, which would divide current year cost
by a three-year average of actual consumption. Mr. Wilson discussed with councilmembers the benefits
and drawbacks to this alternative. Mr. Walters requested that the current methodology be included in the
charts portraying the results of each pricing methodology.
Mr. Wilson next addressed the methodology for developing the capital component of the wholesale water
rates. He said that the current methodology may remain acceptable but he suggested two alternative
Anacortes City Council Study Session Minutes March 9, 2015 1
modest improvements that would achieve greater equity and reduce the disincentive to water sales caused
by the committed volume model. He recommended the second alternative which would allocate regional
debt service using ten-year historical average usage and would allocate planned regional capital
expenditures using customer three-year committed volumes.
Mr. Wilson concluded by briefly addressing potential changes in the penalty rate for exceeding committed
volumes and the introduction of a buyout charge provision.
Mr. Wilson, Finance Director Steve Hoglund, and Mr. Buckenmeyer addressed councilmember questions
during the course of the presentation. Councilmembers discussed with Mr. Wilson and Mr. Buckenmeyer
the two funding philosophies of building reserves to fund future capital projects vs. borrowing to fund
projects and subsequently recouping debt service through rates. Mayor Gere observed that theme
recurring in recent capital expenditure discussions for the City's various utility funds and suggested that the
City decide more generally which approach it would pursue. The mayor thanked Mr. Wilson for his
presentation. She inquired if any audience members wished to comment but no one present wished to
speak.
There being no further business, at approximately 8:35 p.m. the Anacortes City Council study session of
March 9, 2015 adjourned.
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