12/16/81 City Council Minutes (Public Hearing)PUBLIC HEARING
A PUBLIC HEARING WAS. HELD AT 7:30 P., M. WEDNESDAY, DECEMBER 16, 1981, IN THE COUNCIL
CHAMBERS AT CITY HALL FOR THE PURPOSE OF HEARING A WATER AND SEWER RATE RAISE PROPOSAL.
MAYOR HAPP PRESIDED. COUNCILMEN GRANMO, VIDAL, O'BOYLE, SMITH AND RUIZ WERE PRESENT.
WATER RATE PROPOSAL
Mr. T. R.',-Flynn explained that HB #765 enables Councils to raise water rates not to
exceed 12% of last year's gross income, Because it has been three years since the
rate has been raised and because of inflationary cost of providing water, the rate
should be adjusted as soon as possible. A 12% increase will provide revenue of
$47,200.00 per year.
Gene Johnson, representing the Kalispell Regional Hospital, stated that their water
bill will almost double. Mr. Flynn explained that selling a product for less as you
use more is old hat, and this is being changed, mainly at the suggestion of the Public
Service Commission. The hospital is in an area where the water has to be pumped twice
and there should really be an additional 20� per thousand for this extra cost. They
are getting a bargain. It took from December 1977 to September 1978 to obtain a raise
through PSC and bills were revised in November 1978. Cities do not push more often
than they have to,
The City should be setting aside $184,000 per year for depreciation instead of $145 ,000.
If enough is not set aside, if pumps fail or lines have to be replaced or added, the
City could find itself in trouble financially. The City should have a reserve of
$2,275,000 and they have only $367,000,,
Councilman Ruiz stated that labor costs have risen 25% since the last raise.
Jim S ch aren asked if the Water Department could save money if they did not repair on
private property. Director of Public Works Hafferman replied that one of the new
rules is that laterals will be done by owners, We will dig down and tap the main;
anything else will have to be done by a private contractor unless there is a leak.
Councilman O'Boyle stated that there is just one line into Northridge. They need a
loop line, possibly a new well and standpipe or cistern, without adequate reserve
such improvements may not be possible.
Mr. Dale Haarr objected to the 100,000 gallon limit on sprinkling rates.
Mr. Richard Forsythe, Lutheran Home, stated that it would be very expensive to sepa-
rate the sprinkling meter and repipe the building. They do use a lot of water for
sprinkling, however, and it may be worth while to do so.
Mr. Ruiz stated that if we delete the 100,000 gallon limit on sprinkling, it will not
seriously affect the increase. Mr. Hafferman suggests that it be-reitained for conserva-
tion. Water is being wasted and he feels a limit will stop the waste, If seperate
meters are used there is no limit.
Councilman Smith suggested a 200,000 limit.
City Attorney Donahue stated that the rules could contain a paragraph whereby a speci-
fic problem could be submitted in writing for a variance with an appeal procedure.
Several Councilmen felt it would be more simple to just not have a limit.
Meeting recessed at8:22 P.M.
Meeting reconvened at 8:30 P.M.
SEWER RATE PROPOSAL
Mr. Flynn explained that because of past state and federal grants for required improve-
ments, the City has debts for their share of studies and projects. This debt, along
with future mandated EPA requirements have caused the City to have a serious deficiency
in sewer funds. The proposed sewer rate increase will be based on a $1.00 per M
gallons of metered water, with the exception of sprinkling water. Past sewer rate
was based on 85% of the water bill with the exception of sprinkling water.
Mr. Chuck McHenry asked if the ''Big:A" will be a continuing part of sewage disposal
after new digesters are constructed, Director of Public Works Hafferman replied that
the present engineering is being done by Stalely Engineers with assistance from Wright -
McLaughlin, who are,almost exclusively sewage treatment system engineers. We are now
operating on a temporary permit allowing us to inject raw sludge into soil. After a
new plant is built or the old one reconstructed, the odor should be gone and a permanent
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permit issued for injection of stabilized sludge.- We have purchased 40 acres of
land which will be the home base for sludge injection. We will lease additional
farm land also. The sewer plant will be workable.
Mr. Gary Nystul asked if the present increase will be enough to get us into a
replacement progran as sewer trunk lines become overloaded. Mr. Hafferman replied
it would not but he is looking for additional hook-ups for this purpose.
The $1.00 per M gallons may not:be sufficient and we will be looking at mother
12 o increase next -year- The Sewer Dep artment hasnothing at all set aside for
depreciation. Mr, McHenry asked if we had any recourse against the engineers
who designed our present plant.
City -Attorney Donahue replied that after the City was sued because of the odor
problem, a cross -complaint was filed against the engineers and the chlorine in-
jection manufacturer.- The suit has not moved because we cannot ask for damages
until we can determine what the damages are. A new -plant will have to be built
before damages can be estimated.. The present -plant works well except for one
segment.
Only two written protests were filed. One from tne''Fir Board, however, it was
determined that the only sewer charge they have is on the caretaker's home anal
the rest -rooms. The other written protest was from the Washing Well Laundry.
Gene Johnson expressed his, appreci :�tion to :the Dwily'ln.teTLake for their coverage
and to :the Wabex Department fear_ :their iiotV6e`�id dsers .
'Gocilman O'Boyle= commended Mr. Flynn on the thorough study of the sewer and water
funds and the reasonable rates he has proposed.
Mayor Happ echoed Goun cilmanO' Boyle's commendation.
Hearing closed at 9 : 30 P M..
ATTEST:
arj orze Gi.erm ann , City Clerk
Norma E. Happ , Mayor
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