Utility Advisory Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Utility Advisory Committee Contact: Andy Haub 360.753.8475 Thursday, June 2, 2016 5:40 PM City Hall, Room 207 1. CALL TO ORDER Vice Chair Barnett called the meeting to order at 5:40 p.m. 1.A ROLL CALL Present: 8 - Vice Chair Michelle Barnett, Committee member Dever Kuni, Committee member Roger Wilson, Committee member Austin Hildreth, Committee member Steve Fossum, Committee member Arland Schneider, Committee member Jeremy Twitchell and Committee member Chase Gallagher Absent: 1 - Chair Thad Curtz 2. APPROVAL OF AGENDA The agenda was approved. 3. APPROVAL OF MINUTES 16-0676 Approval of May 5, 2016 UAC Meeting Minutes The minutes were approved. 4. PUBLIC COMMENT - None 5. ANNOUNCEMENTS 6. BUSINESS ITEMS 16-0677 LOTT’s Cost of Service Study LOTT Clean Water Alliance staff Matt Kennelly and Lisa Dennis-Perez presented information on LOTT's Cost of Service study. In July 2015, LOTT contracted with the engineering firm Brown and Caldwell to perform a Cost of Service analysis. The analysis is intended to determine costs associated with providing wastewater service and other related policy issues such as: Basis for Unit Cost City of Olympia Page 1 Utility Advisory Committee Meeting Minutes June 2, 2016 Cost Effectiveness Threshold (CET) Reclaimed Water Septic Conversion The Cost of Service study is ongoing, as are discussions with the LOTT Board of Directors regarding policy issues. On June 8, LOTT staff will share findings with the LOTT Board regarding the study to date. LOTT staff answered questions from UAC members. The information was received. 16-0678 Water Resources Capital Facilities Plan (CFP) for 2017-2022 Water Resources Engineering and Planning Manager Eric Christensen presented the draft 2017-2022 Capital Facilities Plan for the Water, Wastewater, and Storm and Surface Water utilities as a part of the Committee’s annual review of the CFP. The deliverable was to provide a recommendation to the Olympia Planning Commission (OPC) and City Council. Mr. Christensen gave an overview of the CFP planning process and explained how the City evaluates and chooses capital projects. He also explained how the CFP incorporates the Utility Master Plans as well as the City's Comprehensive Plan. The Committee noted the CFP is closely related to increases in utility rates. The UAC will review the rates at the September and October 2016 meetings, but a recommendation to the OPC on the CFP will need to be completed before the OPC's September 14 meeting. Committee member Kuni asked for more information on the CFP: 1) Which CFP projects have an impact on the operating budget. 2) Which CFP projects will require loans/debt financing. 3) Cost analysis for CFP projects vs. continuing to fund them with emergency repairs. Staff will gather this information and will provide it in the UAC meeting materials for the August 18 special meeting. A motion was made and seconded to hold a special meeting on August 18 to further discuss utility finances. A UAC recommendation for the 2017-2022 CFP will occur Fall 2016. The motion passed unanimously. 9. ADJOURNMENT Vice Chair Barnett adjourned the meeting at 7:50 p.m. City of Olympia Page 2