Public Works, Sewer and Water

CITY OF VERONA MINUTES PUBLIC WORKS/SEWER & WATER COMMITTEE MONDAY, JUNE 13, 2022 1. The meeting was called to order by Mr. Touchett at 5:02pm. 2. Roll Call: Present: Evan Touchett, Mara Helmke, Rye Kimmett. Also present: Theran Jacobson, Director of Public Works; Jess Billmeyer, AECOM; Jodi Dobson, Baker Tilly. 3. MOVED by Touchett, seconded by Helmke, to approve the minutes of the May 9, 2022, meeting of the Public Works/Sewer and Water Committee. Motion carried 3-0. 4. DISCUSSION of future stormwater utility, sanitary sewer, and water utility rate increases. No action taken. Mr. Jacobson provided an overview of the financial forecasts that were completed by Baker Tilly for the sewer and storm utility. Mr. Jacobson noted the current storm water utility rate is $66 per Equivalent Residential Unit per year. This rate was increased from $53 on October 1, 2018 per Resolution R-18-046. The proposed rate increases are listed in the table below. Year Current Q3 – 2022 Q1 – 2023 Q1 – 2024 Rate $66 / ERU / $69 / ERU / $77 / ERU / $85 / ERU / year year year year Mr. Jacobson noted the sewer rates are monitored annually and MMSD pass-through increases are implemented. The last increase was completed for Q1 of 2021. There was no increase in 2022 as staff wanted to wait until the financial forecast was finalized. The forecast is based upon an increase in necessary revenue. A customer could determine potential increase by taking the total percent increase for their sewer charge in the table below and multiplying it by their current charge. The rate structure is not completed for sewer as staff wants feedback from the committee. The current sewer rates are as follows: Residential Fixed Rate = $41.65 / qtr or $ 166.60 / year Volumetric Rate = $4.29 / 1,000 gallons Year Q3 – 2022 Q1 – 2023 Q1 – 2024 City Rate 1% 5% 0% MMSD pass through 0% 5% 6% Total Increase 1% 10% 6% Ms. Dobson noted that the utility has done a great job managing the rates to apply annual increases since the 2016 increase. The annual increase approach has allowed the proposed increase necessary to be less of an impact over the next few years even with the large projects that have and are proposed to occur. Mr. Jacobson noted the water utility last full rate increase was effective on September 16, 2019 and no increase has occurred since. Mr. Jacobson is proposing to have Baker Tilly prepare a simplified rate increase. Mr. Touchette asked to clarify the simplified increase. Ms. Dobson noted that the application is much more simplistic than a full rate case and that the max increase allowed by the Public Service Commission in 2022 for  a simplified in 4.5% but I would have to verify as part of the application process. Ms. Dobson noted that you can do five (5) simplified increases before a full rate case is required. Committee had no concerns over the proposed increases for the sewer and storm. Committee acknowledged and appreciated the study, input, and forward thinking to reduce large rate increases and perform more smaller increases. Mr. Jacobson noted the next steps would be to have Baker Tilly create the rate structure for the sewer billing classes and the City attorney draft ordinance for the increase in rates to be effect for start of quarter three (3) billing cycle in 2022 for sewer and storm. The ordinance would then be a future agenda item for action at the committee and council, timing is late July or early August. 5. MOVED by Touchett, seconded by Kimmett, to recommend approving water main easement with Wisconsin Department of Natural Resources for Project 2022-108 Wildcat Way water main. Motion carried 3-0. 6. MOVED by Touchett, seconded by Kimmett, to recommend approving professional services agreement with MSA professional services for Project ID 2022-117 Badger Mill Creek multi-use path phase 2, in an amount not to exceed $63,400.40 and contingent upon review by City Attorney and City Administrator. Motion carried 3-0. Mr. Billmeyer noted that this project was one of the many that staff has implemented from the pedestrian and bike plan that was finalized and presented to the council in early 2017. This project is also an extension of the path completed in 2021. Staff is referring to this path as the Badger Mill Creek Path. Mr. Jacobson added that this design contract also includes preparing plans and quantities to install asphalt over the gravel path from the cul-de-sac on Arbor Vitae Place to the existing asphalt path along the Badger Mill Creek near the current Ice Age Trail bridge. Mr. Jacobson noted this project will be incorporated into the Madison Metropolitan Sewer District Pumping Station Force Main Phase 2 design and construction project. Ultimately the City will be piggy backing on MMSD project as MMSD did for the eastside interceptor project. A Memorandum of Understanding (MOU) is being drafted by City Staff and to be reviewed by MMSD. The MOU will be future agenda item for action at the committee and council. 7. MOVED by Touchett, seconded by Helmke, to recommend approving change order no, 1 for Project ID 2022- 101 Verona asphaltic street rehabilitation project in an amount not to exceed $33,000. Motion carried 3-0. 8. MOVED by Touchett, seconded by Kimmett, to approve the 2021 Sanitary Sewer Compliance Maintenance Annual Report. Motion carried 3-0. 9. DISCUSSION regarding Bipartisan Infrastructure Law regarding transportation funding. Mr. Jacobson noted this was an application to Wisconsin Department of Transportation and Madison Planning Organization (which will administer the funds for the greater Madison area) for improving Whalen Road from Old PB through the intersection of Liberty Drive. As selections are granted Mr. Jacobson will update the committee. This will also be included in the capital budget. 10. DISCUSSION regarding “What Goes Where?” information tool. 11. MOVED by Helmke, seconded by Kimmett, to adjourn at 5:48pm. Motion carried 3-0. Note: These minutes were prepared by Theran Jacobson, Director of Public Works. These minutes are based on the notes of the recorder and are subject to change at a subsequent meeting.