City Commission Workshop Meeting

APPROVED: 3/20/2014 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis , FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Thursday, March 6, 2014 8:08PM City Hall CALL TO ORDER: Mayor Bob ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5 - Linda Bob; Albert Eckian; Michael Holland; Karen LeHeup-Smith; and Kress Muenzmay I. Presentation of Workshop Item 14093 Multi-Unit Utility Billing Dianne Kramer, Acting City Manager, explained that the multi-unit utility billing errors are a system problem. She explained that utility bills generated by the City's new software system do show how many units are included on each account but the old system did not. She noted there are also issues with wastewater that will need to be researched. She cited other changes that need to be made to the ordinance so that it reflects what is being done including changes to the applications and instructions. She recommended not charging multiple storm water fees for commercial properties based on the number of units. She noted that there is a different storm water fee for commercial than residential which is a flat charge. She stated that if the charge is levied per unit, it is not proportional to the amount of stormwater they are creating. She recommended charging a larger availability charge for water based on the size of the meter. She explained that the water department determines the size of meter necessary for a structure at the time of development. II. Commission Discussion The Commission questioned the amount of the stormwater fee and asked if it shouldn't be based on the amount of impervious surface. Ms. Kramer agreed stating that is what the ordinance says but not how the fee schedule is structured. She noted that the City previously tried to change the fee structure to base it on impervious surface and received a large amount of public objection. John Futch, Public Utilities Director, commented on the inequity based on per unit charges for commercial stormwater. Ms. Kramer questioned how the Commission wants to charge nonresidential commercial for water. She stated the City could require each unit be metered separately and not allow master meters. The Commission commented on the need for staff to go and inspect those locations and see which units actually have water service. Ms. Kramer stated that when building plans are reviewed, if a unit is to have separate water service, then the City should require an individual meter,· however, if there will be only a common area with water service then the City could allow the use of a master meter. The Commission questioned what other cities are doing with Ms. Kramer indicating that not all cities have an availability charge. The Commission discussed that the availability charge is the basis of the City's entire rate structure and the need for those funds to maintain the water facilities and operations regardless of the amount of water provided. It was noted that the last rate study indicated that any additional increases need to be on the consumption side of the fees. City of Eustis, Florida Page 1 Printed on 311412014 City Commission Workshop Meeting Minutes - Final March 6, 2014 The Commission discussed the following issues: 1) the need for an additional rate study if they wanted to reduce the availability charge; 2) the use of higher usage rates to encourage conservation; 3) not increasing the infrastructure costs by requiring more meters that will have to be read; and 4) the possible future use of radio read meters. Jim Myers, Finance Director, commented on the cost to the City to maintain fire flows, which is part of the availability charge and which affects the fire rating for properties in the City. Ms. Kramer stated that staff has to correct the records. She explained that staff is more confident about the residential accounts as they were able to go to those sites and determine which ones have been ongoing problems and which were due to the conversion. She added they have identified some of the problems and have already sent out letters to residential property owners regarding possible issues. She stated they have not sent letters regarding commercial accounts yet and noted they have identified one account being charged too much. She confirmed that, if an account has been charged too much, the funds will be reimbursed to the account holder. III. Public Input- None IV. Commission Direction The Commission asked what direction was being requested with Ms. Kramer explaining she felt it was important for the Commission to have all of the information before any agreements are presented for consideration. She stated there are several ordinance changes that are needed but she would rather not piecemeal the changes but address all of them at one time . She indicated that staff can go ahead and address changes to the applications and the provision of information to the public. The Commission discussed a single commercial stormwater fee, charging an availability charge to any residential or commercial unit that has water service, obtaining a new rate study if there is an interest in changing the business model, and inspecting commercial units to determine availability in each unit. Ms. Kramer explained that one of her recommendations is to require a written agreement whenever a property owner sets up a multi-unit account. It was recommended that, if someone pulls a building permit with a request to add or reduce meters, that the request is copied to Customer Service. CONSENSUS: It was a consensus of the Commission to proceed with the per unit charges and for staff to send out letters based on the number of units that are in the system and asking the property owner to confirm the number of units. It was also a consensus of the Commission to change the ordinance regarding the commercial stormwater fee . The Commission requested that, if staff recommends changing the rate structure, the City will get a formal rate study done first. V. Adjournment-8:36p.m. Mayor/Commiss ioner *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis org and click on the video for the meeting in question . A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee . City of Eustis, Florida Page2 Printed on 311412014