08212007 Regular Meeting - Laserfiche WebLink

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Regular Meeting August 21, 2007 Page 10 Mr. Guerrero moved for adoption of Ordinance, and Mr. Thomaides seconded the motion. Mr. O'Leary stated due to the increased cost of transformers combined with current retail expansion, the Electric Utility transformer budget has been depleted. He stated the City is still facing supply and demand issues related to the hurricane season of 2005. At this time suppliers are quoting a 42 week delivery time on most transformers. In order to serve our customers, it will be necessary to transfer these funds to insure delivery of product to meet the needs of current and future development. Mr. Bose inquired to the number of transformers this amount will buy. Bob Higgs, Director of San Marcos Utility, stated this will purchase 20 transformers. The Council then voted unanimously for adoption of the Ordinance on emergency. Mayor Narvaiz introduced a discussion regarding Wastewater Winter Average System and direction to Staff. Mr. O'Leary provided a powerpoint presentation. He stated if Council wants to pursue, then Staff will need to bring an Ordinance to the Council. Mr. Guerrero inquired to the examples used for the data and how would it affect retired residents. Mr. O'Leary stated the data was from small households which do not use a lot of water. Ms. Robertson inquired to whether there was an appeal process. Mr. O'Leary stated there would be an appeal process in the Ordinance and adjustments can be made. Mr. Thomaides inquired to a wet winter and then a dry summer, which creates a situation where people are paying extra low bills. Mr. O'Leary stated there could be a dry winter, where people water and would pa higher Water /Wastewater bill. Mr. Thomaides stated the goal is to be revenue neutral and he inquired to whether rates would need to be raised. Mr. O'Leary stated the City hired HDR Engineering, they believe it is not necessary to raise the rates. He stated the Council may choice to raise the cap from 8,000 to 9,000. He also stated eventually the Council may not want to have a cap at all. Mr. Bose inquired to whether there is a rate increase at 8,000 gallons. Tony Bagwell, HDR, stated the rates are uniform. He stated whether the user is using 1,000 gallons or 8,000 gallons, they will be paying the same. Mr. O'Leary stated these rates were done from this year's data, or Council could wait and implement next year. Mr. Thomaides stated he would prefer to use last years' data. He encouraged Council to view these rates every two years. Mr. Jones inquired to whether this would impact residential users or business customers. Mr. O'Leary stated this does not apply to business or commercial accounts. Mr. Jones inquired to whether the Council would raise the cap before we raise the rates. Mr. O'Leary stated raising the cap before raising the rates is always an option. Mr. Thomaides inquired to the cost of raising the cap. Mr. O'Leary stated if the cap was set at 10,000 it would cost $10 a month and if the cap was at 9,000 the cost would be $6 to $7 a month. The Council agreed by consensus to implement what Staff recommended.