City of Bloomington, Indiana City Council, 11 Sep 2019

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From YouTube: Bloomington City Council September 11, 2019

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Meeting Agenda: https://bloomington.in.gov/onboard/meetingFiles/download?meetingFile_id=4898

A

And welcome to this evenings committee the whole on wednesday september, the.

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11Th this evening we have several items on our agenda, starting with ordinance, 19.

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18 that will be in regard to bonds by the monroe county redevelopment.

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Commission and here to present that item is mr. jeff cockerel and without further.

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Ado, if we could go ahead and get started.

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It's a long way to that podium. Isn't it when you start from over there.

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Good evening my name is jeff cockerel. I am one of the monroe county attorneys.

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And tonight I'm here representing the monroe county redevelopment commission.

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There are three redevelopment commission members in the the audience, so they are.

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Here to answer questions: if you have any aris kiessling, efrat, fefferman and.

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Richard martin and I think tonight's may be a little background as in order.

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Monroe keone established what we call the west side, tif district in the early.

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90S and then after that was established, the city annexed a portion of that.

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District at the area we're talking about is essentially the the shopping area.

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Were lowe's is, and some related other businesses there. So when that annexation.

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Occurred we whenever we do a tif bond, we come to the city council to make sure.

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You guys are aware what we're doing and and and somewhat approve what we're.

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Doing so in your packet you'll notice that the we always get a letter from our.

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Financial advisor to make sure it doesn't have any impact on city taxes.

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And you'll see that letter as well. In this case, you know we we currently.

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Have bonds that go until the the tif districts extinguished.

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This doesn't lengthen the time frame of the tif district. So really it has no.

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Impact on city revenues in that area, I think the the most important thing at.

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Least, when I talk to the county commissioners in the county council, they really want to know what are you going to do with this? Because this is a bond and it's not to exceed eight million dollars? Really, we have two different.

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Road projects that are interrelated that we're trying to accomplish here.

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One is to extend profile parkway, which is the which t's in the curry pike, where.

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The former ge current cook site is and extend that all the way to gates drive.

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And also to extend sunrise greeting court to connect vernal pike to gates.

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Drive as well to have a lot of interconnectivity in that area as well.

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As to open up the former, a beebe site for potential development, so those are.

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Kind of the two major projects, the big push for these on, from our perspective,.

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Is to essentially give people a reason not to.

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Use curry pike and 3rd street as much to alleviate a lot of the traffic.

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Conditions that we're seeing out there so those are kind of the the big.

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Projects and what were what we're hoping to accomplish? Thank you very much for.

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Giving us that overview are there any questions from council, seeing no.

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Questions for any of the three who are on the are rdc. Remember: kevin smith, yeah.

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I just want to make sure that these new streets will be complete streets, so they.

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Also, have pedestrian infrastructure and pay attention to non vehicular modes of.

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Transportation and again I can confirm that with our engineer, but I'm positive.

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They are the the actual the this, the road that runs from vernal to gates.

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Drive is actually we're receiving over 7 million our around 7 million dollars in.

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State and federal funding support, so we have to go through all the in dot.

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Requirements for that for that project as well, mr. conwell is brought performin.

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Did you have something anyone to add to the initial presentation before we open.

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Up two more questions: sure if I'm a real, quick and and thank you for considering.

D

This this evening, as jeff mentioned this, is these: are projects that address.

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Connectivity, but they also address safety. Curry pike is one of the most.

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Dangerous roads in the county- and we hope that this you know, alleviates some.

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Some of those issues out there and then, while I was up here also, I just thought.

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I'd acknowledge as the president of the county's redevelopment commission, that a.

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Lot of coordination between the city and the county staff and redevelopment.

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Commission's go, you know happened a day after day, especially with just something.

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As simple as this, where the parcels in a tif district, our shared so wanted.

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To acknowledge the the city administration and their staff, everyone.

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From the you know, controller and public works and alex crowley and economic.

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Development and then the county staff, with mr. cockrell and lisa ridge and her.

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Department really coordinated so well on these things and just thought I'd take.

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The opportunity to acknowledge that so thank you. Any additional questions.

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Councilmember boland, just because n dot says that that's a certain set of.

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Standards doesn't mean that they rise to a city's standards. I'm not necessarily.

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Sure that they would have it as a standard to put a sidewalk in since they.

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Mostly build highways, is there no local standard being applied to a street there.

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Is a standard being applied? I am not a highway engineer and I'd be more than.

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Happy to get that, I know when looking at the bridge plans as well as there are.

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Walking paths- and I know the bridge is being designed with a a path on one side.

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So that pedestrians and bicyclists can can safely transverse that okay, so if.

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There, if you know for sure that there is some kind of pedestrian bicycle.

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Infrastructure added to the street: that's fine with me.

E

Yes, thank you any additional questions. Councilmember simms! Thank you. Thank you.

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For the presentation, mr. cockrell, I'm I not that you need it. I do support the.

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Project or your intentions of it, but I was thinking about any environmental.

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Impact study is that part of you, guys's preparation. I measure going from profile.

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You have to go out cross and land to and then back up to brno. So working with the.

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Current property owner on this- and there are environmental restrictions on that.

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Property due to its former use and we're very well our of those and we are being.

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Very sensitive that I was, we are not going to violate any of the the environmental constraints that are already there as well as any that we.

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Would have as part of our planning process? Okay, do you guys do a study of.

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Some sort or there's no need it's already a study there. There.

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This has gone through yes decades of study. Okay, thank you. Additional.

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Questions from council seeing none we go to the public. If there's anyone here.

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From the public who wishes to speak, please take the podium sign in and state.

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Your name please hi, I'm greg alexander. I can answer that.

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Question the county has an urbanizing area plan that covers most especially the part of the tif district of the city and next.

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And it says that the roads there should be ten feet wide to slow down traffic.

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And it also says there should be sidewalks and it says there should be.

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Connectivity that there should be you know a road between curry and the.

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Highway and so it exactly supports this project because it has it's a year ago.

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That I saw the design contract for it, but it had a five-foot sidewalk on one.

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Side, a 10-foot sidewalk on the other side and a severely substandard bike.

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Lane, in addition, but I have a lot of concerns about that design, but it is.

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Miles ahead of the city, end of gates drive the city end of gates drive. I.

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Can't even express to you how badly it was engineered, but the simple fact the.

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Matter is, it has sidewalks over almost all of it, but at the very end of it.

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Where it meets 3rd street or highway 48 or whatever you call it out, there.

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Because of I-69, they installed sidewalks along 3rd street.

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But those sidewalks don't connect to the sidewalks on gates.

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It takes about it'll, take about 200 feet of sidewalk on each side of the street.

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To connect and then there's just up gates a little bit on one side, there's a.

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Sidewalk gap, just a regular sidewalk out 500 feet really easy to do. Just dig a.

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Ditch to fill it with gravel and then put a concrete pad on it, but on the side.

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Of the street, where jacobs drive is that's the it's like a curving street.

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That goes into like wendy's and white castle and michael's, and all that crap.

G

It's got a really challenging intersection for pedestrians. I can see.

G

Why they didn't put sidewalks when they built that intersection that that.

G

Intersection is actually really bad for drivers as well. It's basically it's it's.

G

It's optimized for really big trucks, and that's, I think it's good at it's actually really bad for somebody trying to make like a left turn coming out of there, but it is impossible for pedestrians and it.

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Has no sidewalks at the intersection itself, no marked crosswalk, where there's.

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A island like a pork shop, I've heard it called like a little island there's no.

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Sidewalks on that either, and if you want to do a good job on that, you're really.

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Gonna have to reconfigure that intersection and so that it becomes like.

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A half million or a million dollar project. And if you don't want to do a.

G

Good job, it just put 100 feet of missing sidewalk paint, crosswalk and call it.

G

Done I'd, you know when the county has a plan and they they build a sidewalk. The.

G

City should have a sidewalk network for them to connect to, and we don't have a.

G

Sidewalk network, if you get even a mile from the courthouse, every single.

G

Sidewalk is 3/4 gap with the single exception of west 3rd street. That's a.

G

Huge irony- and this isn't staffs fault- this is.

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You guys haven't put the money towards it. The sidewalk commission's budget is.

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Is a joke so now it seems kind of ridiculous to say that we need sidewalks.

G

And such an unlockable location, it really does everything it can to discourage walking. So this I apologize for the subject matter, but this is.

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Straight from the newspaper this was about a year ago, police say a man was.

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Masturbating in car, a hundred block of north gates drive yada yada, the officer.

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Noted the high pedestrian traffic in the area. So when it comes, you know the.

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Officer standing there looking around who has seen this public indecency.

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He sees pedestrians walking in the street there and he knows there's.

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Pedestrian traffic there it is a walkable area, because highland village is right there. You know, there's lots of housing right there, stone chases, even.

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Walking distance to this location, it's like a mile. It's nothing to walk except.

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That every piece of that experience is going to be miserable and there's no sidewalks people are walking in the street. Thank you. Thank you. Any.

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Additional public comment with respect to this project.

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All right back to council for final comments before we move do pass. Thank.

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You for signing in councilmember, rollin yeah- I mean it would be nice to have a.

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Diagram of the planned improvement, but I need to go I'll look for it myself.

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I'm sure it's in the packet or the counties thing, but otherwise, mr.

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Alexander's words have made me look at the intersection of 3rd and and the.

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Highway and it it is a disappointment. I have to say thank you, three citizen.

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Commission members, both for your hard work and for being here this evening,.

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Those are, of course, the county's redevelopment commissioners, who are here.

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In the back and nodding their presence, it's always it's always really neat to.

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See the good work that can be done by people who are volunteering to do so and.

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We appreciate it. Thank you. Thank you. We're ready for a move, do pass and is.

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There a second for that. Second, I will start on my right with council member.

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Chopra? Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes, thank you very much and passes 8-0. We do.

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Appreciate that, thank you so much all right. Next on our agenda, we're gonna.

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Have a series of ordinances with regard to utilities questions this next one is.

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Ordinance 19-15, it's an ordinance authorizing the refunding a certain.

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Outstanding sewage works, revenue, bonds of the city authorizing the issuance of.

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The city of bloomington indiana sewage works, refunding revenue, bonds of 2019 to.

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Provide funds for such refunding and the payment of the cost thereof and.

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Addressing other matters connected there with a lot of legal, speak and with us is.

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Mr. carr mister, not who I expected I'm mr. underwood, I.

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Go by many names, jeff, underwood city controller, it's okay! I missed one.

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Meeting of this group- and I found out, I got nominated to present so I'll- be.

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Brief, we do have representatives from utilities, from legal counsel, barnes and.

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Thornburgh and our financial advisors there's otto crowe that are here to.

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Answer any questions you might have, but essentially we're going to ask you to.

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Approve the refunding of three state revolving fund bonds: these are in the.

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Wastewater sewer department series, 2004 series, 2006 series b and 2006 series c, a.

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Total of seven point: six: eight: six million dollars current interest rates.

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Are between three point three and three point: four: on the bonds. This will be.

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Down to just slightly over two percent, if you approve it and we move forward.

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The savings is about a hundred and twenty-eight thousand dollars a year or.

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About four hundred and thirty four thousand dollars total, these will have.

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The same maturities as they currently do, the 2004 matures in 2026.

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And the two series b's and c's mature in 2027.

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We would ask that you approve this so that utilities can save some money and.

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We'd be happy to answer any questions you might have very good. Thank you. Mr.

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Underwood any additional questions from council council members serve on the.

J

Savings include the cost of the bond lawyers, the net savings; okay, thanks.

A

Additional questions, councilmember, piedmont, smith, yeah, I'm trying to find.

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It in the ordinance, which is huge, there's something about parity bonds.

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What is that like? We can also issue.

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Hi brad bingham, with barnes and thornburgh. We service bond council.

K

Parity bonds mean that there's other bonds outstanding that have an identical.

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Claim on the revenue source as the bonds which are being issued, and so I don't.

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Have it memorized, I may call on buzz here, but what we're refunding are three.

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Separate series of outstanding bonds were issued through srf. There are other.

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Bonds, which are currently outstanding that which we're not touching- and I.

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Think those were issued in 2012, 13 and 17. Yes,.

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So these refunding bonds will be on a parity with the 2012-13 and 17s meaning.

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They all, if there's ever a shortfall, not saying there would be, but everybody.

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Would share equally in that in that loss, you're kind of all on the same footing.

K

That's what parity refers to okay? So it's not like new bonds that we're.

C

Issuing is just saying these are additional bonds that are not being.

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Refinanced and they are, if you know, there's only so much money to go around.

C

They're gonna be on the same. We defined them in this ordinance as outstanding.

K

Parity bonds, meaning they're identical in rank to the bonds, were issuing now.

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But they're still out there on the same level. Okay, thank you additional.

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Questions to my left council member simms- I don't know who probably jeff but.

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It's more of a statement but I'll make it a question since that's the way it's.

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Supposed to be it's fair to say that all the bonds that we're requesting or.

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You're proposing to refund and then reissue or all the bonds that we could.

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At this time that we're eligible to be done so at this current time we have.

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Just recently identified another series that has a potential for that, so we may.

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Be actually back later this year, early next year on another refunding issue for.

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The utilities department, okay and as a council member on that board, I think the.

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Board unanimously supports this and we're gonna save a lot of money and.

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Basically, why not, so I think it's a good move. Thank you. Other questions from.

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Council, maybe councilmember piedmont, smith. I'm sorry.

C

There's this is a huge ordinance, so I have to scroll through and see where my.

C

Questions were oh yeah, the sinking fund. So can you explain what that is again.

C

It's a debt service reserve fund in the utility world, it's called a a sinking.

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Fund so essentially you're required to fund a debt service reserve fund. That's.

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Equal to one year's payment, so essentially, if there's.

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Default on the bond, they know that at least the next year would be paid for so.

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That cash will get rolled into this and it's a part of the net savings.

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So the 484 is, after applying that and then another debt service reserve fund.

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Will be created with the refunding, so where does the money from the sinking.

C

Fund come from it's an it's in a fund. That's under the utilities department.

C

Well, it's from that when you sell bonds, you fund a debt service reserve so.

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There's two ways to fund you: either fund it out of the bond sale or you buy a.

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Surety bond and in most cases we just fund it with cash out of the bond. So.

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Essentially, you're, it's like when you rent, you know where you pay the first.

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And last month's rent, so when you move out, you don't have to pay the last.

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Month's because it's already there, this is essentially the same thing right so.

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It just goes if, if you don't need it, it goes towards the last payment of the.

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Bond got it. Thank you, some council, seeing none here. We go to.

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The public, if there's anyone here who would like to speak on the issue of.

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Bonds and seeing none from the public, we are back to council for a final.

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Discussion council, member granger, thank you.

L

I do remember mr. underwood conversations in the past. You know akin.

L

To the surety bond, I just wanted to say that I'd never heard the sinking fund.

L

And I think that's a very unfortunate name.

I

Thank you, that's why we call it a debt service reserve fund. Yes, thank you.

A

Anyone else from the council can't remember piedmont smith. I just want to.

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Thank whoever had this idea, because it seems to be a good idea to save us quite.

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A bit of money, so good going I'll, take credit for it. Anyone else from council.

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All right do we have a recommendation to move, do pass moved. Second, alright and.

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I will start on my left this time. It counts. Remember! Rallo! Yes! Yes, yes, yes,.

L

Yes, yes, yes, thank you very much. That's another 8-0 pass. Thank you very.

A

Much and next up, we do have ordinance 1916 to amend title 10 of the.

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Bloomington municipal code entitled wastewater rate adjustment and we will.

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Have I'm assuming mr. kelson to present for the next couple of ordinances? Thank.

M

You good evening, council members, I'm vic kelson, director of utilities. I have with.

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Me, our assistant director or engineering brad schrader, our assistant director, for.

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Finance laura pettit also with us, are representatives from crow who did the.

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Financial analysis around this item: that's craig lots and jennifer wilson. I.

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Have a brief presentation regarding the sewer rate review that we've just.

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Completed and the proposal that that we're making regarding the sewer rates.

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In 2016 we did our last sewer rate increase, it was a 22% increase and it.

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Was the first one in quite a long time? At the time, council asked us to bring.

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Rate requests more frequently, preferably on a three or four year cycle and in in.

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Doing that we also are trying to make the cycles be for water and sewer be two.

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Years apart, so that so that, instead of seeing one big increase every once in a.

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While we'll see smaller increases every couple of years for water and sewer our.

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Plan is to do the sewer works and the stormwater utility in the midterm.

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Election years and to do the water rate cases in the presidential election years.

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So we intended to bring the sewer rate request to you last year, but we had had.

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A lot of trouble getting the financial analysis completed in time, so we only.

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Did the storm so now we're bringing the sewer rate request to you in 2019, so the next time we would expect to do sewer would be.

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2022, in addition to the requests that council had made for frequent or.

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Scheduled rate reviews we've been encouraged by some council members and.

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By our members of our board to take a cost of service study approach to.

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Setting rates for service so in across the service study you establish classes.

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For the customers and you determine what it costs to provide the service to the.

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Each class of customers, and in our case as a municipal utility, we can't make a.

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Profit, so our charges are designed to exactly cover the cost of our operations.

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In 2016, as I said, we did the across-the-board increase of 20 to 22.

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Percent, shortly after that, we received a warning letter from the indiana.

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Department of environmental management, I'll call them item for short, that.

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Warned us that we had exceeded 90 percent of the capacity of the dillman.

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Road wastewater treatment plant for three consecutive years. As a result, we.

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Had they gave us five years to come up with a plan for how we were going to.

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Make sure that the the capacity of the plant met the growing demand in the.

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Dillman road basin we've been working on that we've had a.

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Number of meetings with idem we've been working with contractors to do.

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Engineering design for a number of projects that both modernize our.

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Wastewater plants and also address the capacity limitations at delmon, the rate.

M

Requests were bringing tonight covers three things: it covers the inflation and.

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The cost of operation and maintenance that would be just the normal, increasing.

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Costs that we face every year, plant, monetization and capacity improvements.

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For the dillman plant and plant modification and some equipment plate.

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Replacement project for the blue triple plan. As far as.

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Customer classes, state law allows municipal utilities to establish.

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Differing rates for sewer works customers based on whether they reside.

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Within the city limits or whether they're outside the city limits this.

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Accounts for a couple of things that are related to the cost of providing service.

M

Primarily out in the county, there are fewer customers per mile of pipe or per.

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Volume of pipe than there are in the city simply because the population.

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Density is is much lower. Also, the number of customers served by a lift station.

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Same reason is smaller than it is inside the city. So, as a result, we've asked crow.

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To analyze the difference in the cost of providing service inside and outside the.

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City, many communities in the state do have differing rates for customers.

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Inside and outside the city and you'll see what kinds of numbers those are in.

M

Crows presentation, our capital improvement plan, calls for a total of.

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Approximately 75 million dollars in capital and replacements and.

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Improvements in the next five years of the seventy five million dollars about.

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30 of it is spending that's dedicated to the capacity improvements and the.

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Modernization projects and the plants, the rest of it is your normal capital.

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Maintenance and recruit and replacement fixing pumps replacing other equipment.

M

In the plants, many of the modernization projects that we're considering will.

M

Greatly reduce our use of electricity and our carbon footprint as a wastewater.

M

Treatment utility, it does not include improvements to the digester at the.

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Dillman plant, this is owing to the fact that there's currently a study going on.

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To consider whether we want to move to an anaerobic digestion system, so we've.

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Really accounted we put nothing in for the digester in the next five years,.

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Simply because we don't know what kind of a digester we're likely to have and.

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We don't want to spend a bunch of money, improving our aerobic digester if we're gonna, simply replace it with an anaerobic system. So.

M

So the capacity expansion portion of this won't be completed until after the.

M

Five years covered by this rate request, this is very small. I apologize for it on.

M

The screen it is in your packet, these two slides show the project's the major.

M

Projects that we're doing at the dillman road and blue chapul plants and in our.

M

Collection system and then other is dealing with things like advanced.

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Metering and so forth, so these these items are all placed in the in the.

M

Details, if you have questions about any of the items specifically, we can address.

M

Them during the question-and-answer mr. schrader can handle those I'd like to.

M

Invite representatives from crow to come in and present the results of their.

M

Financial analysis and then I have some concluding remarks at the end. Thank you.

N

Good evening my name is craig lots and I'm joined with my colleague, jennifer.

N

Wilson, I'm from crow, and we prepared a presentation that I understand, I think, will be.

N

Thank you very much. um As mr. kelson mentioned, we prepared a rate and.

N

Financing analysis for the sewage works, which I probably will refer to as.

N

Utility throughout the duration of the presentation, however, that analysis was.

N

Done on the sewage works, this is a summary of that report. We're gonna, walk.

N

Through some of the methodology behind that, as well as what we found so to.

N

Begin when we do a rate and financing analysis and we break it into a few.

N

Different parts first begins with a historical financial review. That's.

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Taking a look at the last three years of operations for the sewage works, 2016.

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Through 2018 with that comes a look at the income statement, the balance sheet.

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As well as the fund balances of the sewage works and and what those look.

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Like compared to mandatory fund balances, as provided for in the bond ordinances,.

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Next, we look at the development of a test year. 2018 provides the most recent.

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Year of operating results, but we want to work with utility staff to understand.

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What will a future operating year look like in terms of changes and expenses.

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Changes in budget, as well as looking at other things that are fixed, known and.

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Measurable, that might be affecting the utility differently than they had been.

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In the 2016, through 2018 period- and we use that test year to look at the total.

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Revenue requirements, what is required of the sewage works to operate for a given.

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Year so in that are the operation and maintenance expenses that are analyzed.

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Through the test year, it's looking at the debt and lease payment obligations.

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Of the sewage works that we are that are known and expected, and then it's looking.

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Also to what mr. kelson was referring to earlier on the capital improvement plan.

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The extensions and replacements which is that amount of funding that the utility.

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Would need to have on hand to fund those improvements occurring over the next few.

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Years, it's a brief background of methodology, a few considerations for.

N

This specific analysis that mr. kelson already alluded to is one the capital.

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Improvement plan. That's a ten-year plan. However. Our.

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Report was was looking at the first portion of it.

N

Through 2025, it's important to note that the rates that are proposed under this.

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Analysis are only looking through funding of that plan through 2023, so.

N

There's some projects and 2024 and 2025 that are not considered for funding.

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Consideration reason for that is that, when looking at the outstanding debt of.

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The sewage works there's some debt that reaches final maturity in the 2024 and.

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2025 timeframe, meaning that the sewage works will have greater capacity greater.

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Funding capacity that is to take on additional projects at that time through.

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A bond issue or through another funding source, so we left those years out of the.

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Analysis with the thought in mind that it'd be more appropriate to look at.

N

Those during that 2023 2024 timeline as that debt is rolling off to analyze. How.

N

Could projects be most effectively funded rather than trying to project.

N

That this many years in advance the other component that we were considering.

N

Was an outside surcharge factor alluding to what is the difference in providing.

N

Service to customers located outside of the city versus customers that are.

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Inside the city and understanding the cost differential between those two.

N

Customer classes, to give a few highlights from that historical.

N

Financial review, beginning with the balance sheet, one thing to note is that.

N

The sewage works has been able to build up ten point. Four million dollars of.

N

Cash in anticipation of these capital improvement projects, those funds have.

N

Been set aside and are ultimately going to be used to offset the funding.

N

Requirements and that would need to be funded through either cash on hand. On a.

N

Pay-As-You-Go format or through additional bonding proceeds and so.

N

That's a very strong thing on the asset side of the balance sheet I mentioned.

N

Before that, we take a look at fund balances compared to requirements.

N

Outlined in bond ordinances, all of the fund balances of the utilities that.

N

We're looking at including the the sinking fund of the debt service reserve.

N

Fund and the operating fund, those all exceeding eve at or exceeding the.

N

Balances stipulated and those bond ordinances the chart you'll see on this.

N

Page is summarizing the annual debt payments, and this is getting to that.

N

Point I summarized earlier that you can see in the next few years there will be.

N

A decrease in the annual amount of debt service, that's required to the utility.

N

That's what this chart is summarizing is for each year, what level of debt service.

N

Will the sewage works and be required to make so you'll see that there's some.

N

Level of drop-off and 2021 and then beginning in 2024 and through the next.

N

Five years or so, there's continued decreases in that annual level of debt.

N

Service again getting to the point of when you're looking at those projects on.

N

The back part of the capital improvement plan there's going to be a little bit more flexibility from a funding perspective. To consider how you might.

N

Finance those or pay for those down the line. Moving on to the income statement.

N

You'll see the both revenues and operating expenses of the utilities.

N

Summarize 2016 through 2018, fairly consistent across those that three-year.

N

Period I'll note in 2017 you'll see an increase in revenues. That's commensurate.

N

With the rate increase that went into effect january 1st of 2017, that was.

N

Approved in 2016, that was a 22% increase. Expenses have been relatively consistent.

N

During that same time period, however, when we start to look and develop that.

N

Test years, when we really hone in on expenses as well to make sure that those.

N

Historical years are going to be indicative of a future operating year.

N

Moving on to the next portion of the report was that analysis on serving.

N

Outside city customers compared to inside city customers, to frame this.

N

Discussion, it's important to consider that the sewage works is incurring all.

N

Types of costs and providing service to customers, part of our analysis, was.

N

Identifying that portion of costs that are common to all customers, regardless.

N

Of location versus the portion of costs that are common to just outside city.

N

Customers, and so that's what these next two slide are going to be summarizing, is building that differentiation between the two.

N

Costs costs borne by all customers, regardless of location, and then those.

N

Cost specific to outside city customers, so an example of a cost that is common.

N

To all, no matter where you're situated inside the city or outside the city, if.

N

You're sending flow through the sewage work system that flow will ultimately.

N

Get treated at the treatment plant, so a treatment plant costs is going to be.

N

Common to an outside city, customer or an inside city customer where you starting.

N

To see some differences materializes when you look and consider the.

N

Collection system of the utility that infrastructure that transmits flow from.

N

A customer's location to the treatment plant and analyzing the collection.

N

System of the sewage works. It's apparent that some of that collection system is.

N

In service to only outside city customers, so it's not being used by.

N

Customers located within the city and that's where really becomes a driver of.

N

Our analysis is looking at collection systems of the sewage works and how can.

N

We identify the cost component associated with that collection system.

N

So begin with, the top part of this chart is taking a look at the collection.

N

System located actually not exactly located whether inside the city or.

N

Outside the city, but rather who that collection system is serving, is it.

N

Serving inside and outside customers, or is it serving only outside city.

N

Customers, so in viewing the volume of pipe that's common to all customers that.

N

Comes in at just under one and a half million cubic feet or 88% of the total.

N

Volume of the collection system that compared to the portion of pipe serving.

N

Only outside customers, which is just under two hundred thousand cubic feet or.

N

Eleven point: seven: seven percent of the total collection system that allocation.

N

Is going to be important for determining that portion of collection system costs.

N

That could be attributable to outside city customers. Next, we look at.

N

Depreciation expense and we summarize all depreciation expense of the sewage.

N

Works here, however, we're really wanting to focus on the collection system, depreciation, expense, the utility or.

N

Sewage works has made a lot of investments and its infrastructure both.

N

At the plant and in the collection system, depreciation is that measure of.

N

Cost on an annual basis of how can we count that value of a previous.

N

Investment that we've made so in looking at 2018, just under 1.4 million dollars.

N

Of depreciation expenses being recorded for collection system, the bottom part of.

N

This table is summarizing all of the costs associated with the collection.

N

System that includes transmission and distribution expenses at just under two.

N

Million dollars booster and lift stations, as mr. kelson referred to.

N

Earlier at just under two hundred thousand dollars and then lastly, that.

N

Component of depreciation expense specific to the collection system at.

N

Just under 1.4 million dollars in total that comes to collection system, expense.

N

Of three point: four: nine million. When we apply our eleven point, seven seven.

N

Percent allocation factor that results in total cost attributable to only.

N

Outside customers of four hundred and ten thousand dollars now that we've.

N

Identified that portion of costs specific to outside customers, we need to.

N

Build a differentiation or a factor between those costs that are borne by.

N

All customers versus those costs, specifically borne by outside city.

N

Customers, so to do that we look at the 2018 operating year and and consider.

N

What were the revenue requirements in 2018, so that includes operating expenses.

N

Which encompasses depreciation and those that fifteen million dollars represents.

N

Total operating expenses we back out that portion of operating expenses.

N

Specific to outside customers, because we're really trying to identify here.

N

What costs are common to all both inside and outside? Next comes our debt payments.

N

And lease obligations I mean those are all listed, resulting in current costs of.

N

A utility common to all customers of twenty point: four million dollars now.

N

Since these costs curd and service to all customers, we can.

N

Apply them, or rather allocate them across the entire base of customers. So.

N

If we look at build consumption of the entire sewage works that comes in at.

N

Just over two and a half billion gallons. So taking that twenty point, four million.

N

Dollars and spreading that across the build flow of the sewage works that.

N

Results in a cost allocation of seven dollars and ninety seven cents and costs.

N

Per thousand gallons of built, sewage and again that represents costs that are.

N

Common to all customers. Next, we do a similar exercise just with those costs.

N

That are specific to outside customers so that four hundred ten thousand.

N

Dollars that we calculated on the previous slide is now pulled forward. We.

N

Don't get to apply it or allocate it rather over the entire base of the.

N

Sewage works. We can only look at that build flow associated with outside city.

N

Customers, which is over four hundred and thirty, two million gallons so dividing.

N

That four hundred ten thousand dollars of cost specific to outside customers.

N

Over the billed flow associated with outside customers results in a cost.

N

Allocation of ninety five cents per thousand gallons now, when viewing the.

N

Responsibility of an outside city, customer they're responsible for the.

N

Costs that are common to all users of the utility, regardless of location.

N

Inside or outside the city and then they're also responsible for that.

N

Portion of cost specific to them so in this example, or rather this calculation.

N

That's seven dollars and ninety seven cents, plus ninety five cents resulting.

N

In a cost allocation of eight dollars and ninety two cents for a thousand.

N

Gallons of usage, in view of how that relates, or what is the differential.

N

Between that that calculation of costs compared to the cost come to all, we.

N

Would divide eight dollars and ninety two cents divided by seven dollars and.

N

Ninety seven cents, which results in a factor or differential of twelve percent.

N

And that is what we were calculating as the outside city. Surcharge factor is a.

N

Twelve percent difference in cost between customers located outside the.

N

City and in the city, the outside city, surcharge.

N

Factor then comes into play when considering what would a future.

N

Operating year, look like for the sewage works both for revenues and expense. It.

N

Earns and so that's when we make adjustments to historical financial.

N

Information to develop what we would expect the attest year to look like so.

N

We make a couple different adjustments when getting to that test year. One are.

N

Some bookkeeping adjustments making sure that the 2018 year we can understand and.

N

Adjust to be representative of the revenues and expenses of the utility or.

N

Sewage works on the revenue side. We make an adjustment for the additional.

N

Revenues that would be received from implementing an outside city surcharge.

N

Factor so that adjustment is taking that twelve percent differential multiplied.

N

Times the revenue from outside city customers during the test year and.

N

Applying that increase to future pro forma or test year revenues. Next, we make.

N

A variety of expenses between again the historical years and then an x, operating.

N

Year, that's taken to an account changes and budgeted salaries and wages as well.

N

As making sure that we're counting for some expenses that weren't actually.

N

Recorded during the 2018 year, including pilot and the shared services contract,.

N

And all those adjustments again are being made with the effort and goal of.

N

Identifying what would a future year of operations look like I mean with that.

N

I'm gonna turn it over to my colleague, jennifer wilson who's going to talk in.

N

More detail about funding the capital improvement plan. Thank you.

O

Thank you craig. What I'm showing here on this slide is how we're funding that.

O

Seventy-Five million dollar capital improvement plan; okay, how we're funding.

O

That there we go how we're funding that seventy-five million dollar capital.

O

Improvement plan that was presented earlier so we're proposing in the year.

O

2020 that a bond issue be fun to be done so that it can fund twelve million.

O

Dollars worth of those projects and that will pay for projects that were slated.

O

In the year, 2020 and 2021 then we're proposing that in the year 2022 the cash.

O

Balance of ten point, four million dollars that have been built up by.

O

Reorganizing the projects and and had been built up since the last rate.

O

Increase be used in those two years to fund some of the large projects. We then.

O

Also show in our report that in the year 2024, another bond issue is proposed, but.

O

We are not, in this rate, analysis proposing what that rate impact will be.

O

As craig and mr. kelson had alluded to, there is some debt that is rolling off.

O

And so at that point time you might have the capacity to take on additional debt.

O

Without making any rate impact and then there's within the capital improvement.

O

Plan is automatic, meet meter, reading lease and that is taken care of in.

O

Another revenue requirement, so that's the red mark, red pie, slice and then the.

O

Rest of it in blue is the pay-as-you-go capital, so that will be paid about four.

O

Million dollars per year to pay for projects on an ongoing basis, we are.

O

Proposing in the year 2020 that she issue bonds, it would be a 20-year bond.

O

Issue that be issued in the open market and we're estimating that the net.

O

Interest cost rate would be three point: two four percent and that'd be a fixed.

O

Rate, it wouldn't be a variable rate, it'd be fixed once at the time of sale. This.

O

Would result in a nine hundred thirty five thousand dollars increase in debt.

O

Service each year, so we've layered, the blue mark is the additional debt that.

O

We're proposing over the current outstanding debt and yellow that had.

O

Been presented earlier.

O

This new debt is added to the currently outstanding debt to the other revenue.

O

Requirements of the utility, so the big blue mark is the loop. I slice is the.

O

Operation of maintenance expenses at twelve point: four million dollars, taxes.

O

Is six hundred and eighty three thousand dollars debt service would be five point.

O

Two million dollars per year, the lease payments are 1 million dollars and the.

O

Extensions and replacements is four point: 1 million dollars, so the total.

O

Revenue requirements is twenty three point: three million dollars your current.

O

Adjusted operating revenues that have been adjusted as craig discuss, discussed.

O

Earlier are twenty two point: seven million so there's a deficiency of six.

O

Hundred thirty five thousand dollars, this results in across-the-board rate.

O

Increase of three percent on the in on all customers, so the inside city.

O

Customers would see an increase of three percent and the outside city customers.

O

Would see an increase of 15 percent because they would see the twelve.

O

Percent surcharge and the three percent increase. What the impact is to an.

O

Individual customer can be shown here on this typical monthly bill. The inside.

O

City residential users usually use about three point. Three thousand three hundred.

O

Thousand gallons per month, so their rate we showed there at three thousand.

O

Gallons, it would be increasing by ninety three cents per month and then the.

O

Outside city customers, average user has uses three thousand seven hundred.

O

Gallons, so again, if you look at three thousand gallons, they're increase would.

O

Be four dollars and seventy nine cents per month we did do a rate survey and.

O

The results can be shown here, we surveyed thirty, three other communities.

O

That are population greater than twenty five thousand, so we thought those were.

O

Comparable to you of that, eight of them had a rate surcharge for outside city.

O

Customers, ranging from 14 percent to 15 percent bloomington, ends up right. There.

O

In the middle, with their current rates and charges at five thousand gallons at.

O

At forty six dollars per month and the rate increase would bring them to the.

O

Top of the middle third $48 per month. Now that I hand that back.

O

Over to dick for closing comments.

E

It's gonna wrap up.

A

M

So the last thing I just wanted to provide to you is what our staff is.

M

Recommending we recommended this to utility service board and they have.

M

Passed along their recommendation that the council adopt this cbu staff is.

M

Recommending to raise about five percent in revenues overall, that would be.

M

Allocated as a three percent increase for the customers who reside inside the.

M

City and 15 percent increase for the customers who reside outside the city.

M

And this reflects the 12 percent difference in the cost of providing.

M

Service to the customer classes- and I thank you and we're all here for any.

M

Questions that you have thank you very much, and anyone from council have.

A

Questions for the fiscal analyst at crow or for mr. kelson mr. boland. Yes thank.

E

You what's the total population served by.

E

Cbu, when you include the territories of wholesalers, the total population.

M

Japanese, that's on the water side right we serve, we don't have any wholesale.

M

Sewer customers. Okay, then that's it then, but I mean we're still talking about.

E

People outside the city, who are getting an increase so clearly.

E

Worse, so maybe we're you're only serving them directly it. So what you're saying.

E

That's right: we only serve sewer customers directly and let me ask that.

E

What is the total population not including co-ceo, since they don't.

E

Count on, I don't have that roughly, I can't remember it's more than 85,000.

M

Right well, the total for the entire system. Yes morning it more than 85,000.

M

Yeah, okay, I mean has around 22,000 connections. Is that right? Something like.

M

That, okay, I mean I'd like to know that, for an.

M

Okay, I'll get that inframammary. Is there anyone right now in the city.

E

Who would have to pay more? Who would have to pay well, so the other thing is.

E

When you say outside versus inside the city, you're really talking about more.

E

Dense versus less dense places, yes, if we were to annex a place that currently is.

E

Outside the city, there, their rate wouldn't necessarily go down.

E

Because they were located in this less dense place, is that not right to say.

E

Actually, it's a little bit more complicated. What would happen is that I.

M

Presume as as as council was looking at an annexation legislation, we would know.

M

What the map was and the analysis that that we've just seen from crow would be.

M

Reax acute adhan, the new maps, so whatever the surcharge is, would either.

M

Go up or down depending on what the new map looked like right, but I'm trying to.

E

Get to the bottom of the idea that somehow some parts of the area outside.

E

The city limits are, you know, is this not an arbitrary sort of definition? Aren't.

E

There some dense places just outside the boundaries and some sparsely populated.

E

Places within the city certainly the the challenge. There, though, is that the.

M

Legislature only gives us the city limit as a boundary for estimating for.

M

Developing customer classes, so it's not really your choice like this is this is.

E

What state law that's what you to do, but but I will say that if there was.

M

Property outside the city that was annexed into the city, the the people.

M

Moving into the city would certainly see their rates would almost certainly see.

M

Their rates go down when they were inside the city. Okay, good to know the.

E

Other question I have is: isn't it fair to say, contrarily that there are parts.

E

Of the system inside the city that will not be used by people outside the city.

E

Why are we? Are the people outside the city paying for the infrastructure.

E

Inside the city, well, the portion of the infrastructure, that's inside the city.

M

That everybody pays for are the large interceptors and so forth. So we do have.

M

And similarly, we, the large interceptors that that that travel from say, downtown.

M

Down to the to the dillman plant, those actually serve everyone, whether you're.

M

Inside or whether you're outside so but part of those lie outside the city and.

M

Portion of those device outside the city is a is not considered part of this.

M

Surcharge, so why is it that an interceptor serves everybody? It doesn't.

M

Mean that yeah, why yeah explain that why that is? Well, it serves everyone, because.

M

It takes all of the water to the plant from a large from a large catchment.

M

Basin, so you're bringing all the water in and everybody is benefiting from the.

M

The existence of of that interceptor, it was not just a matter of filtering out.

E

Fog, for example, fall off fat oil and grease. Well, that's other kind of thing.

M

Happens there, so the the the matter with fats, oils and grease is that the the.

M

Cost of dealing with fats, oils and grease are distributed equally across.

M

All customers, because the the management of the grease is actually handled by the.

M

Customers that discharged the grease in in the case of restaurants and other.

M

Other or institutions like that, but there's also fog, that's generated by.

M

Residents, we all generate varying amounts of fog in our own homes, so that.

M

Portion of the fog is is, is not accounted for separately in your rate.

M

It's it's accounted for by equalizing it across everybody, okay, so, in other words,.

E

You're saying that there are some interceptors that are only serving.

E

People outside the city- I don't think so, I think all of our interceptors sort of.

M

Everyone can you see why I'm confused by this? Like is it? I don't feel like I've.

E

Gotten a satisfactory answer to the question that there would be. I don't.

E

Understand what parts would only be used by people outside the city.

E

Well, the collection mains in neighborhoods outside the city, don't.

M

Serve people inside the city, so they're accounted for separately in the.

M

Surcharge. Because because the number of people who are.

M

Attached who are connected to those mains is smaller, so the cost of.

M

Maintaining and operating those portions of the system are allocated across fewer.

M

Customers, if you take an a mile of sewer pipe, there are fewer customers connected.

M

To it and fewer customers paying for it, then inside I totally get that I just.

E

You, but you argued that there are, I mean again the restate the question: are there.

E

Not parts of the system inside the city that are not being you not helping.

E

People outside the city, like I just don't understand I'll, withdraw the.

E

Question, thank you. Never chopra do you still have a.

A

Question I think that councilmember valen was asking my question, which isn't.

H

So much a question but a point to be made that you know isabella and I.

H

Contribute and use the sewer systems differently and we both live in the city.

H

Right so no confusion there. It's and I understand it's arbitrary and there's.

H

Not a real practical reason, a practical way to address the matter, otherwise, is.

H

That right I mean, if you could differentiate between my usage and.

H

Isabel's and all of us who live in the city and then equally compare them to.

H

People in the county, you can't you can't practically do that right. Well, you'd do.

M

It on an average basis, so the average density of our of the service area that.

M

Lies inside the city is much higher than the average density of the portion of.

M

The system, that's of the service area, that's outside the city. What I'm saying.

H

Is to be more accurate than that is impractical. Well, it's it's actually that.

M

The law allows us to establish customer classes based on whether they're inside.

M

The city or outside the city they can't, we don't have the ability to establish.

M

Customer classes for I live in park ridge, so there's for the north east side.

M

And the south side and so forth, we don't have that that authority. So so again, it's more of a point than a question so I'll go ahead.

H

And move on my question: is the city chooses or has the option and agrees to.

H

Or, however, it may be to provide our services outside of the city. I mean.

H

There's no one forcing us to do that right, yeah! That's right! Okay! Thank you!.

A

Any questions to my left temps. Remember it rallo! Thank you for.

P

The presentations this will be reevaluated based on annexation. Yes, if.

M

There was an annexation map proposed. We would we rework the analysis. Okay, as is.

P

That a is that a large task, in other words, is it. I mean everything's in.

P

Spreadsheets that could be modified by algorithm or something, and you could.

P

Arrive at this exercise for for us and for the for the contractor and for our.

M

Staff was establishing all of the data that's associated with it, and some of.

M

That required rearranging some databases and since we've done it once now doing.

M

It a second time or a third time would not be nearly as complicated okay remind.

P

Me again of what percentage of that 2018 number of 21 million, almost 22 million.

P

Dollars in revenue are derived from county from customers outside site. I.

M

Don't know that percentage okay, so the 12% is based on that correct right. Okay,.

P

And what is it? Did you have an estimate of the proportion of residents outside.

P

The city that that half sewer as opposed to septic or our own packaged plants.

O

Sorry, I just looked up the number. It's actually four hundred ten thousand.

O

Dollars just to be totally accurate there, okay and then proportion of those.

P

That have sewer, as opposed to septic, that I don't know. I don't know how many.

M

Residences there are with septic tanks in the county, but we can get an estimate.

M

Of that, okay, I mean clearly, I mean this all makes sense, because you're trying to.

P

Internalize you're trying to reflect the cost. The true cost of extending service.

P

A way you know outside the city and and and that makes sense to me- there's a.

P

Cost associated with with that and people who choose to live in the city. I.

P

Mean it shouldn't be subsidizing sprawl. In a sense I mean, I guess this is.

P

Internalizing costs in the guard right so, but the and I know you you have.

P

Another presentation, but the other point is that we don't want people using.

P

Septic tanks- absolutely right, so you don't want the cost to be such that it.

P

Is provides an incentive for people not to hook on it? Well that that's true the.

M

The challenge was septic is is more complicated, though, because if you have a.

M

Septic tank and it fails you're required by the county to connect to a sewer if.

M

There's one within 300 feet of your home. If that sewer doesn't exist, you can't do.

M

That so you're faced with replacing a septic.

M

Tank at a very large expense, and in the case where and where the, where things.

M

Get complicated is that in order to have, if you have small lots like city lots, if.

M

You have a septic tank finding another place on your lot for a septic tank is.

M

Very difficult, so you you need, if everybody's on septic it necessitates.

M

Everyone having larger lots, so those septic tanks are interfering with each.

M

Other and polluting the regional system, and also because, if one fails and you.

M

Need to build a new one, you'll have a place to do it, so so that that sort of.

M

Things so it gets more complicated. What what this! What we're, what we're hoping.

M

Is that, where we're making the the charges reflect the the difference in in.

M

Providing the service to different to the to different classes.

M

Customers, if they're on the sewer it will still, but it will always be a a up.

M

To the customer or the potential customer to decide whether they want to.

M

Work with their neighbors to build a sewer in their neighborhood or whether they want to replace all their septic tanks yeah. But I guess we're in an.

P

Agreement that it's a public good to try to motivate people to move away from.

P

Septic, especially in this area, with heavy clay, soils and so forth, certainly.

M

It is yes, okay, then there's something a man may respond, just there's something I.

M

Left out when I was responding to the question about costs that are borne by.

M

Everybody half roughly half of the cost of running running the the sewage works.

M

Is debt service most of that debt service? In fact, almost all of that debt.

M

Service is wrapped up in the two treatment plants so and and we're.

M

Treating water that goes to the plant as being exactly the same, regardless of.

M

Where it came from so operations, most of the cost of our.

M

Operations are in the plants, the cost of the staff and the plants, the cost of the.

M

Electricity, the cost of the chemicals, the cost of all those sorts of things, so.

M

When we talk about the difference in costs, you know that it might look kind.

M

Of small to you because of the population density differences. But what.

M

It's really only reflecting is that portion of the collection system that.

M

Serves only outside customers so that that explains how that you know the the.

M

Masked majority of the costs that are borne by everyone are that serve.

M

Everyone are the cost of operating the treatment plants. I apologize for just.

P

Acting meta moment, I wouldn't follow it. If I could so when you get a bill, you.

P

Have sewer storm water and water reflected on that bill? Yes, and and the.

M

Sanitation yeah in sanitation now and apart from sanitation, are those accounts.

P

There are no way fungible. In other words, you can't take money from one account.

P

And use it another one for debt service or anything like that.

P

Our separate correct: we can loan from one to another, but we have to pay it.

M

Back in a year, okay, I see thank you councilmember granger. Thank you.

L

In one of the slides, yeah well, actually in a number of them, it looks like we had.

L

Profit over the past three years is that how we accumulated that ten point four.

L

Million dollars for capital, it's not profit when we wrote the 2016 rate case.

M

We anticipated doing a large variety of projects. Those were in the great case.

M

But just shortly after we completed the rate review with council in that year, we.

M

Got this thing called a sewer ban warning letter, it's a warning from idem.

M

That, if we don't start taking action to to increase our capacity to handle the.

M

Growth. That item has the has the right to disallow any new connections to the.

M

Sewers, so that means that we've got to get to work on having a plan. So what we.

M

Did was those projects that were in the cip in 2016 were held back so that we.

M

Could make in an integrated approach to the whole problem problem rather than.

M

Doing one project or another that we're making all of those projects into a.

M

Larger program with the idea that we can optimize costs as we execute the project.

M

By not doing them piecemeal, so what's happened is, as we've been going through.

M

The engineering work to design the the the improvements for the thing, including.

M

The capacity issue we've been holding that money for those projects so that.

M

Money is set aside in a separate fund simply for the purpose of executing.

M

Future capital projects, so it's really not profit. It's money that we've been.

M

It's money that we intended to spend on capital projects, but we deferred the.

M

Projects and save the money so that we can do the projects in a more organized.

M

Mr., what you have something else to add to that, in addition to that as well, if.

N

You look at the income statement highlights. I think that was the slide.

N

You may have been referring to the income statement highlights when.

N

Revenues are exceeding expenses, that portion of expense is only operation and.

N

Maintenance expense. There are other revenue requirements of the utility that.

N

Are not reflected in that bar, such as the debt service payments and the lease.

N

Payments ongoing capital needs, so part of that differential will be those other.

N

Things that you need to fund that, from accounting perspective, don't show up on.

N

The income statement, but in actuality, are our revenue requirements of the.

N

Utility that would need to be paid, so it's basically, then things like debt.

L

Service that requires us to have a rate increase debt service payments. I was.

N

Referring only to that income statement which showed the revenues and excess of.

N

The operation and maintenance expenses- it is true that the revenue requirements.

N

Or revenues need to be set to pay operation, maintenance, debt service, lease.

N

Payments and ongoing capital, however, the the factors for this increase are mostly.

N

Related to the capital improvement plan and those funding, considerations and.

N

Then also there's, there's always budgeted. Adjustments to operation amaze.

N

Expenses that would also warrant ok. Thank you. Thank you.

A

Council members turbo, you still have a question: yeah are there commercial rates.

J

And residential rates there are not. The reason for this is that we charge.

M

Different rates for water distribution, based on the commercial and the.

M

Residential but all of the waste water that's produced is treated as being the.

M

Same with one small caveat, and that is for commercial or industrial customers,.

M

They're subject to our industrial pretreatment requirements and they're.

M

And, and in the in some cases, they pay additional surcharges if their.

M

Wastewater is stronger than normal wastewater, like a brewery, for example, so.

M

There are surcharges for the biochemical oxygen demand and for the suspended.

M

Solids that come from industrial facilities, they're also.

M

Subject to in many cases, pretreatment requirements to make sure that their phs.

M

Are not different from the ph of the the rest of the flow and so forth, so that is.

M

All those costs are all internalized by the the discharger at the time that they.

M

Do it, similarly, the commercial properties that are subject to our the.

M

Fogg requirements, though the grease interceptors, the inspection programs and.

M

So forth, those costs are all internalized by paying to do those.

M

Services at the at the point before they're discharged, so the idea is that.

M

Our commercial and our industrial customers are assumed to be discharging.

M

The same character of wastewater as everyone else, and if their wastewater is.

M

Stronger than everyone else's, they pay a surcharge based on sampling that we do.

M

Right so the larger bills I mean the businesses outside of the city might.

J

Feel that 15% quite a bit would would that be a fair statement or not. I would.

M

Assume so yes, yeah and what would the average increase have been if we didn't.

J

Differentiate about five percent, five percent versus three percent versus.

M

Three percent: yes: okay, yeah. I have a few questions about your capital improvement.

C

Plan so the plant expansion at bluets, your pool, it looks like in 2025, you're.

C

Expecting to spend 12 million dollars is that, like a whole new plant or oh, no, a.

M

New plant would be about 50 or 60 million dollars, or maybe more than that.

M

What's what's happening at blue tree pool? Is that to do a larger expansion so.

M

Right now, the the rate of capacity for that plant is six million gallons per.

M

Day, if we wanted to raise that up to say 8 or 10 million.

M

Per day, we would actually have to go build additional treatment, basins and.

M

Clarifiers in order to handle that additional flow, so that would be a and.

M

We'd have to expand the size of the the lift station and wet well at the head of.

M

The plant we'd have to expand basically everything.

M

Would have to get expanded so it would be a major project to expand the blue.

M

Trepal plant, so we aren't anticipating having to do that for at least until.

M

2025 before we starting to embark on a project like that, but that's all subject.

M

To change depending on development pattern, so if development and the blue.

M

Tree pool basin happens very quickly over the next two or three years. We may.

M

Need to accelerate that, on the other hand, if development in the blue trepal.

M

Basin doesn't happen in the next five years. We could. We would push that back.

M

Based only on the the need for additional capacity at the plant, I see.

C

Thank you and then I also see the there's a column here for 2019 and I'm.

C

Curious about how those are being funded, because we're already into september.

C

Well, we're paying for those out of cash, so we have. We have cash reserves that.

M

We've been saving and we're using those we're. Also. Every year we have a budget, a.

M

Portion of our budget called extensions and replacements. It's basically, if you.

M

Take all of our total revenues and subtract the debt service, the cost of.

M

Personnel, the cost of utilities and supplies and so forth. If you subtract.

M

All of that, from our total revenue what's left over is called en our.

M

Extensions and replacements and that's used for capital projects. Some of that.

M

Money's been socked away for this. This big project that we're going to big set.

M

Of projects we're going to have to do, but we're also having to do capital.

M

Projects in the plants that are not affected by that larger, that larger.

M

Initiative so those things were paying for out of cash. So when you look at the.

M

When you look at the the change that's called out in our in in.

M

Our new cip, there's about 30 million dollars that are dedicated to new.

M

Spending in the plants related to modernization and capacity improvement.

M

At dillman, those 30 million dollars will be paid for roughly in ruff thirds about.

M

A third from new bonds about a third from cash on hand and then the remainder.

M

Would be pay as you go capital from the enr that we're going to be seeing in our.

M

Funds that we'll have in the coming years, okay, may I ask one more question.

C

On the same topic, so you all you have for this year at blue chip pool. You have.

C

A $306,000 roof replacement. I don't know, I know in some areas you do have solar.

C

Panels would this be an opportunity to add solar panels on roofs at lurcher.

C

Pool actually that's the question that I asked just a couple of weeks ago and.

M

We're going to look into it, so that has that project has not been put out to bid.

C

Yet so it could well, it has been put out to bid, but we have to look at the.

M

Structural limitations of the of the structure itself, and I believe they were.

M

Looked at before, but we're not replacing the roof infrastructure we're replacing.

M

The roofing material in that case so but I did ask, can we can we do any more.

M

Panels there, the the blue, triple solar project is still not complete. So there's.

M

A lot of variables in that at this point that we're still working working through.

M

Okay, well, that's good to hear that that that's an option to add after the new.

C

Roofing material is put on is, is solar, a facet at both wastewater treatment.

C

Plants currently yes at the one at the drinking water plant, we will be.

M

Commissioning the the the new solar panels at the monroe water treatment.

M

Plant in the next few weeks, it's just owing to being able to.

M

Schedule it around our demand cycles, but the at the dillman plant.

M

There there are three portions of the array the first portion has been in.

M

Service for a while and the other two are nearly ready to go into service. So.

M

They will be will be tying those in shortly, and you said there are already.

C

Some panels at blue triple-a, blue chapul. We have in us, we haven't actually begun.

M

Installation yet in the interest of getting the other two plants right first.

M

And our service center and the south east tank at blue tree pool there's.

M

There's some challenges with some of the land being below the below the 100-year.

M

Flood plain which, which obviates putting solar panels there, we do have some parts.

M

Of the property that we can work on, so we're still working on the map. For that.

M

Okay, thank you. Thank you. Remember bowling, isn't it safe to say.

E

That the bulk of the reason for the increase is capital improvement said not.

E

It's maybe maybe half and half I would say so, the other half being oh just.

M

Operating inflation. Well, I guess I meant the new, like the the difference between.

E

The revenue and the expenses, that extra is what you're expecting to use to do.

E

Capital improvement, primarily cap yeah, yes, I mean so even to call it profit is.

E

A mistake: it's excess revenues, there's no shareholders except the city of the.

E

Residents, the city, okay, the other question I have is how much bigger can.

E

Our plants ever get like: what's the maximum, is the maximum capacity for.

E

Example of dillman road, the capacity of lake monroe or like will, we have to.

E

Build a new plant, I mean this is its maximum imaginable capacity. Forty.

E

Million gallons a day, 50. Well, that's a great question, so the dolmen plant, if we.

M

Look at the dillman plant right now, the we can. The engineers tell us that we can.

M

Get the capacity of that plant to 20 million gallons per day without building.

M

Any additional treatment basins most of our basins are used for.

M

Duration for biological treatment, the other two basins are used for aerobic.

M

Digestion, the hide the most the largest hydraulic capacity, that is the amount of.

M

Water, we can push through the planet and with the current set of pipes, and so.

M

Forth is around 25 million gallons per day. So if we get to 20 million gallons.

M

Per day of treatment capacity of biological capacity, then we would still.

M

Have some headroom on the hydraulic side? It, however, we wouldn't be able. We.

M

Wouldn't have enough biological capacity to treat the additional 5 million.

M

Gallons at that point, we would have to build new digesters whether they're.

M

Anaerobic or aerobic, we would have to build new digesters in order to get to.

M

25 million, but the engineers tell us we could get to 25 million. By converting. We.

M

Could probably get to, I think we can almost certainly get to 25 million by.

M

Converting the digesters to aeration and adding and rebuilding the digestion.

M

Portion of the plant separately sure, but now we're I mean I guess the.

E

Reason I asked is because it seemed that 20 was a modest increase. Perhaps you.

E

Know we wanted to go bigger than that. Well, and 20 will get us based on the the.

M

Current rate of increase in demand 20 gets us out to gets us at about 15 years.

M

Or 18 years, so, okay, so we're we're pretty solid there at the blue, trepal.

M

Plant any expansion, we do there it's going to require additional basins. So if.

E

You're talking about northward, I mean bucher pools in the far far bones of the.

M

System, road up north of town, so right now that plant is more or less as big as.

M

It can get in its current configuration so to expand, it would be, would require.

M

Additional construction on the site, so it's at its maximum of how many million.

E

Gallons a day, what's it six million six million right.

M

Now, but to get it to increase its capacity, we would have to build.

M

Additional basins there, but I mean it's a matter of just building biological and.

E

Hydraulic capacity, that's you don't need to sort of build the infrastructure of.

E

Another plan you can expand those as long as there's room near them as long as there's room and the pipes will carry the water. Yes,.

M

Okay, thank you ranger thank you is this. Is this the first year that we're doing.

L

This surcharge for county residents, or is it just that it's a increase, the.

M

Surcharge for outside city customers is a would is, this would be the first time.

M

It had been enacted, but once it's enacted future increases would be.

M

Roughly the same for both inside and outside, because it only covers the.

M

Distant difference, perfect, thank you. Thank you. Council members, turbo. Yes,.

J

Utilities gets its money either way. The the pay of the differentiation is that.

J

To capture anticipated growth in the circum, their surrounding areas of the.

J

County: what's the motive of the differentiation, it's simply to allocate.

M

To make sure that the customers are paying what it costs provide them. The.

M

Service, but it spread broadly much more broadly, if you don't differentiate on.

M

Average they're the kind even misses within the city boundaries. So it's our.

J

Little arbitrary on the boundary so is there: is there a thought that there will.

J

Be a lot of growth on the outside and this will help pay for the extension of.

J

Sewer that could happen, but that's up to the various planning commission's and.

M

The utility service board has to approve extensions outside of area a we've. The.

M

Area a which is basically our service area, so extensions outside of those.

M

Outside area a have to be approved by the usb prior to final approval,.

M

Extensions inside of area a are, we are allowed. Was there a light bulb moment.

J

When you guys decided we'll charge the county this in the city, this well and.

J

What happened there? Well, what happened was we were looking at the question of.

M

Of cost of service analysis for for both water and wastewater, you know we have.

M

Customer classes, depending on what you do with the water on the water side and.

M

We'll be talking a lot about that next year, but the but we we haven't had.

M

Customer classes on the sewer side, the legislation allows us to do it based on.

M

Whether you're, inside or outside of the city limits that happen with water as.

J

Well, next time, no, it won't because it's already account with with water.

M

It's accounted for by the fact that we're mate you were selling wholesale.

M

Water to customers that serve areas that are outside of our service area, so you.

J

Just knew you were allowed to, and so you did it. hmm You knew. I was looking for.

J

That moment, when you decided oh well, the moment was when we started looking at.

M

The ability to establish customer classes first for water and for sewer.

M

And when you look at what other utilities are doing in the state, as as.

M

Jennifer said about a third of the communities that have municipal sewage.

M

Works that are larger than 25,000 population, about a third of them.

M

Actually do have a surcharge, and if this surcharge of 12% is established, we would.

M

Be the ninth utility to do it and ours would be the smallest of them. Okay, thank.

A

You thank you. Any additional questions from council.

A

C/O councilmember piedmont, smith. I just wanted to ask if we could have the.

C

Slides sent to us sent to the council. Certainly yes, thank you all right.

A

If there are no further questions from council, we go to the public burning.

A

Comments please step to the podium and sign your name and state your name.

Q

Yes, my name is gary arbor and I'm a resident in the county.

Q

I'm still trying to gary's about your question about the moment that it was.

Q

Decided to do this surcharge, I'm still trying to wrap my head around the.

Q

Coincidence of this and the annexation issue that came up last year, a couple.

Q

Years ago, but I certainly understand that there are a lot of inequities in.

Q

Providing services I'm sure if, if you're in the city and.

Q

You're living in one of the new.

Q

Apartment complexes they're being built in town that has that it's much more.

Q

Profitable for the district to provide service for those people and to reap the.

Q

Benefits of the revenue that comes in than it is for single family residents.

Q

Again, I live in the county on this on the other side of roar down by the.

Q

Speedway and a little subdivision cardinal clan and between our.

Q

Subdivision and roar there's another subdivision. I don't know the name of it.

Q

It's on derby drive and some of the cul-de-sacs around that and then on. As I.

Q

Understand it theater the north side is the would be the city you have to.

Q

Correct me, if I'm wrong, because that's been my understanding anyway and the.

Q

Density of the subdivisions, the two subdivisions on our side are, is greater.

Q

Than the density of the subject, single family.

Q

Residents both sides is greater than the density on the city side. So again, I'm.

Q

Just want to make the point that I understand there are a lot of inequities.

Q

And I understand that this is the only thing that the law allows you to do. I.

Q

Would I hesitate to say it, but there are a lot of bad laws in this state and.

Q

Maybe this is one of them and I'm sorry for perhaps even bringing.

Q

It up, but I just I just feel that this is this is not an equitable resolution.

Q

To the issue of inside the city, limits are outside the city owns. Thank you.

Q

Thank you any additional comments from the public and, if so, feel, free to make.

A

Your way to the podium, we do ask that you sign in and state your name. I my.

R

Name is phil argenti. I live in the county as well, and I kind of went second.

R

His comments, and also some of the comments that him questions been made so.

R

The idea of classes it's, it is an inequality so because I choose to live.

R

In the county that, when the development was built, when its neighborhood was.

R

Built the developer put in city sewer, city, water, we are being treated.

R

Differently and having to pay more, so I don't use the on a daily basis. The the.

R

Sewage system, whatever in the city but I'm being charged for that. Okay, it's a.

R

City utility- I get that but the idea of classes- and I think you brought up the.

R

Point if, if we were to annex, was discussed a couple years ago,.

R

And the rates would go down, nothing has changed.

R

The pipes are still there, the amount of water is still there, but because now.

R

We're in this arbitrary boundary of a city, our rates would go down. So I don't.

R

See how that's fair, either thanks comments from the public this evening.

A

And seeing none, we are back to the council councilmember grainger. Thank you.

L

I've often thought about the fact that that we do provide services to people.

L

Outside the city, and it it not not that I'm saying anything for annexation, I.

L

Think if we do that it has to be thoughtful, it has to involve neighbors.

L

But but I'm thinking about us as a city providing services to people who live.

L

Outside of the city- and I actually think it's a good idea that we are charging.

L

Proportional surcharge for these services now these gentlemen talked.

L

About an axe, a shin, let's say the neighborhood is annexed. The city has an.

L

Obligation to provide services to city residents, so we shouldn't charge you.

L

More than we're charging anybody else, because now you live in the city, but I.

L

Think about the way that it worked in my mind, it's really about the pipes going.

L

Out there you're taking the pipes outside of the city, I mean all the.

L

Everybody uses all the pipes inside the city, so that price is the same. But now.

L

We've have pipes outside the city that cp is, is responsible for and we are.

L

Going outside of the city to provide that service, and I I appreciate that.

L

That surcharge, it's really a cost for doing services, and it makes sense to me.

L

I also want to thank crowe for that presentation.

L

Sometimes numbers roll around in my head and my.

L

Eyes flip backwards, but this time I just found it really fascinating and I could.

L

Follow it and it made things clear for me and I I appreciate your work on that.

L

Thank you. Thank you, councilmember chopra similar. I.

H

Actually had a question: that's why I was trying to raise it quickly. It's a short.

H

One, if you don't mind sure, could you again bring up the slide that shows the.

H

Day the average county users increase in cost per month. I believe you showed that.

H

Up there, why was, I was gonna comment so I'll start my comment: how does that.

H

Sound yeah I'll go ahead and start my comment and want us up. I can finish and just roll it right in because my question.

H

Will be answered.

H

Okay, so what's the what's, the additional cost per month for an average county.

H

User, so up to 3,000 a customer that uses up to 3,000 gallons would see an.

M

Increase of four dollars: seventy nine cents per month- actually that's up to.

M

Four thousand, it would be yeah for 79 to get that's all the way up to four.

M

Thousand gallons per month. Okay, thank you, so I do think that this proposal.

H

Makes sense, it certainly doesn't make perfect sense to make perfect sense, as I.

H

Alluded to earlier, every single city, and/or, county user, would get to pay.

H

Exactly what they're imposing on the system and that's just impractical, it.

H

Does make sense to draw a line? Is it arbitrary? No, is it sensical yes and is.

H

It allowable by state- yes, so I'm in favor of this and you know I've had some.

H

People emailing me from outside of the county, who are in favor of this.

H

I've heard some people speak, you know not necessarily against, but questioning.

H

This idea, but not once did it, has anyone said to me: oh gee, I won't be able to.

H

Afford that- and I think that's where, where if it were really a question of.

H

Affordability, I would, I would be a little more hesitant, but right now, I'm.

H

Leaning towards yes on this, thank you. Thank you, councilmember simms. Thank you.

F

I found it interesting about the light bulb moment and- and I think we all can.

F

Understand that analogy, this is more of a overtime. A 25 watt bulb that moves to.

F

A 40 watt bulb that moves to a 50 watt bulb it's that kind of moment and there.

F

Are many factors that have brought us to this point? I was stressed out and some.

F

Of the folks that we all represent when we had the 22% increases, but one of the.

F

Things is is that if you don't keep up with the expenses and all of the other.

F

Investment things that we didn't do for several years and then we have to get.

F

Caught up and then that's where you get those spikes and I think that's why we.

F

Talked a lot about bringing it to us more often, so it's not spike it's more.

F

Until we kind of get caught up and be where we need to be there's a lot of.

F

Factors we've done some work on college, small role, that's gonna, reroute, some.

F

Things from as I understand it, from delmon toward bluto, we got the hospital.

F

In a box on the bypass that, when that's in that's going to have to go blue trees,.

F

Way so I think we're doing a real as best job as we can in anticipating.

F

Growth catching up where we've been lacking in several years and even before.

F

Discussions of annexation we're starting to occur the utility service board that.

F

I've been a part of for a while, we've been talking and asking for a cost of.

F

Services study for how long I mean for a long time, because it just.

F

Did it makes sense with what we were doing? We increase this hookup fees.

F

Because they were seriously under priced and particularly when you're, adding.

F

Multifamily structures, so so once you see all that, then you have to increase.

F

Those costs, because that's what it costs, I mean it's, the cost of service. That's.

F

What we're saying so, hopefully, if in fact there is some annexation or.

F

Something that comes into the city, then that will hopefully spur more density.

F

Which will help ameliorate, the cost and and thus bringing some revenue as part.

F

Of the city, so we can keep our infrastructure up, see and that's it.

F

We're focusing on some things and rightfully so, but let's think about the.

F

Pipes has got to get it from here to there. The pipes go from here to where.

F

The city property ends and then what it takes to move from there on out further.

F

And I think we did the best job. We could to make sure that all common services.

F

Were kept that way common services, and I guess we really could have just said.

F

Across the board, 5% kind of reach the same thing: it's not fair, it's not part.

F

Of the cost of services study- and I think that's where you get the.

F

Differential there, so many of the questions that my colleagues asked.

F

Tonight and we've asked previously- and I think staff here can know that that many.

F

Of people in the utility service board and myself even another city, lay someone.

F

Has asked some of the same questions? In fact, I've warned them that they.

F

Probably ought to be real prepared when they come here, because my colleagues.

F

Will, in fact, do what we've done tonight, which is to be as thorough as we can and.

F

And so I appreciate the presentation I will support this.

F

And one last things we talked about this as part of legislation. I want folks to.

F

Understand in many cases that when we do these increases, I pay those increases to.

F

Okay- and I don't like it, but I'm more concerned not with an.

F

Individual rate increase but and as I've talked with several folks, we might do a.

F

Little increase here and a little increase there and you know and.

F

Everybody's just a little well, ultimately, us folks is paying the bill.

F

That that increase starts to add up so I'm kind of looking at it more in a more.

F

Broader picture, if you will from the equities equity standpoint, but the.

F

Bottom line is water source infrastructure growth just has to be.

F

Done- and I wish we'd have done it sooner than later so and I will support this.

F

Thank you. Thank you, council members, toronto. So I guess I.

J

Have one more question and that's I get that individuals within the city would.

J

Pay either throughout three or five percent: that's not a big difference, but.

J

Who are the big users who would be more subject to benefit and loss in this.

J

Change are there very large users of sewer and that have large large bills.

J

That this will affect disproportionately well, our largest customers, indiana.

M

University right so in I'm sorry our largest customers, indiana university.

M

Right and and by far so, we sent letters to our largest specifically sent letters.

M

Regarding this change to our 30 largest customers, a couple of weeks ago, to let.

M

Them know about this, you know we're proposing to have it go.

M

Into effect at the first of the year, but you know we have reached out and.

M

Given additional information to the largest customers, but the customer that.

M

That pays the most is is iu. There are some large other large customers inside.

M

The city some of those are, are someone mentioned apartment buildings where.

M

Where the the the water bill and the sewer bill is included in the rent in.

M

Those cases they don't separately meter each of the each of the apartments so.

M

Those can be pretty large, the mall is pretty large and so forth right. What.

J

About the large county users, large county users, I guess our large.

M

Industrial users in the county, so this would be mostly on the west side right.

J

So the large city users would all rather go three percent than five percent. I.

J

Would expect certainly? Yes, I would think so.

J

Okay, I'm a little I'm not comfortable with that. I can like insurance that.

J

Spreads it all across everybody in some ways, so I'm just gonna think about that.

J

Does it it seems to affect some people disproportionately, but it may be just it.

J

May be a just effect. Thank you. Thank you can't remember, bolin to respond to.

E

Customer simms for a minute. This is the first time in the history of our utility.

E

That we city residents will not be paying the same amount as non city.

E

Residents, so it's not true that we're gonna pay the same bill, so I think.

E

That's a fair, that's what I heard, but I do think that it it's a legitimate.

E

Question what people who don't live in the city raised, and so I want to address.

E

It I'd like to say a lot that the word city, the word town, the word village,.

E

Municipalities of any kind do not appear in the constitution, but the word state.

E

Appears in the name of the country or the united states, each state has the.

E

Sovereignty and cities as corporate entities only exists with the permission.

E

Of the state, so you know, even though humans don't.

E

Spread evenly across the landscape because humans, cluster together every.

E

State has laws that you know deal with municipalities and what they are and.

E

Aren't allowed to do, but we are subject to their jurisdiction. What I really.

E

Heard from members of the public speaking about it, who don't live in the.

E

City, you know that we could say those lines arbitrarily drawn, but I agree that.

E

They're not arbitrarily drawn that they're drawn based on density, that when.

E

A place densifies, it eventually gets to a certain density that it makes sense.

E

For it to be under municipal jurisdiction, but what the public.

E

Commenters are really arguing, for is the kind of thing you only see in countries.

E

Like canada, where you have metropolitan management, where you don't have, I mean.

E

I'm from lake county there are 27 different municipalities in lake county.

E

Here, there's bloomington, elseville and stein's, ville and bloomington is the.

E

Only city in the county, so we're kind of used to the city in the county being.

E

Similar size, governments and the city dominating the county population, but you.

E

Know like only the only way we'll be fair to everybody is if we had.

E

Essentially, unigov, that's not gonna happen anytime soon. The state hasn't.

E

Been fond of unigov ever since it passed in the 70s, so you know, based on the.

E

Presentation, I just think that it's baseless, that this is somehow unfair. I.

E

Think to nan nan city residents. I think that the utilities apartment did a.

E

Really good job of presenting the logic behind it, not the least of which is even.

E

If we did want to somehow rate areas of the city, according to its density state.

E

Law doesn't allow it, and so it's the kind of thing that I would urge resident.

E

Of the county to take up with the state I mean, essentially they did that with.

E

The annexation action that they took, which isil.

E

Considered to be illegal, but at least it started the conversation, however,.

E

Negatively, but that's really, you know only the state can make that final.

E

As to how municipality should be governed until then, I think that what.

E

We're doing is very much par for the course it's a very standard. I think it's.

E

About time that we are identifying higher costs outside city limits, the.

E

Principle is the farther away. You go the more geometrically the costs go up.

E

You know it's not to say that there aren't some sparse areas of the city.

E

There are some very arbitrary annexations, but overall the general line.

E

Around the city, I think, is where it should be for now and the lines that.

E

We're thinking about adding are not entirely inappropriate. Thank you. Finally,.

A

I will just say again: my thanks to mr. watson is wilson for from crow. It is.

A

Really important, whenever we're talking about any kind of an increase to have.

A

That that study of the cost of services- that was very very enlightening- and I.

A

Think it helped. All of us up here see the value in this, and also thank you to.

A

Mr. kelson and your your staff for again thinking ahead and working on these.

A

Things in an incremental fashion, I will be in support and if there are no.

A

Further comments from council, let me do pass your pass in second, let me start on.

A

My right with miss chopra.

C

Yeah? Yes! Yes! Yes! Yes, yes, seven! Nine, zero, one, seven zero one! Thank you very much.

A

And right back to our last item for this evening and that's ordinance, 19 17 to.

A

Amend title 10 of the bloomington municipal code, titled wastewater by.

A

Amending that, regarding connection fees, to allow a waiver of these fees in two.

A

Limited circumstances to promote conversion of septic, to sewer and to.

A

Complement certain city, affordable housing programs, ladies and gentlemen of.

S

The council, my name, is chris wheeler and I'm with city legal before us. This.

S

Evening is ordinance 1917 and I don't know how rare it is, but it is a.

S

Circumstance where, if you just pull your mic a little bit closer, some of us are.

A

Having a hard time here, I'll have to move closer to the podium, I think it.

A

Does move you can bring it forward? This is a to me at least a rare circumstance.

S

For me to be able to come before the council or any board and make a.

S

Recommendation for staff that would provide less cost to our users. We have.

S

An ordinance in place for connection fees that's been around since I believe.

S

1994, that requires the city utility for wastewater to charge a connection fee.

S

For all new connections, it's a shell and not a may. We are obligated to charge.

S

That fee, regardless of the customer or the circumstances, that the customer.

S

Might face or the cost that that connection fee might be, however, having.

S

Said that our utility recognizes a couple of programs in the city that we.

S

Believe would benefit greatly from an amendment to this ordinance. That would.

S

Allow for some very limited circumstances for an exception to be.

S

Made by way of a waiver, those two exceptions would be for.

S

In the first instance for application, that is made by the hand, department.

S

Asking that a waiver occur in instances where there is affordable housing going.

S

On for single-family residence, the definition that would be used for this.

S

Would be derived by hand using the us department of housing and urban.

S

Development's guidelines, so that's one exception where we believe that it would.

S

Benefit the development of affordable housing, which is one of the mayor's.

S

Programs and is highly desired by the executive office. And we would like to.

S

Facilitate that where we can- and this is an instance where we can do that- the.

S

Other application for waiver would be for real property owners within the city.

S

Limits owners of real property located within city limits, who desire to abandon.

S

An existing septic system in order to then connect to our sewer systems or to.

S

Otherwise, protect our municipal separate storm water sewer system, which is to say.

S

To protect the outflow of any negative impact into our lakes streams and other.

S

Drinking waters, we believe that a properly functioning septic system works.

S

Very well, but you have to rely upon each individual property owners desire to.

S

Actually, properly maintain that system and to determine when it is time to.

S

Abandon that system we would like to provide economic incentive and.

S

Encouragement to those within the city limits who have the ability to connect.

S

To a sewer system to do so sooner rather than later by waiving that connection.

S

Fee, so when those two limited circumstances, we would propose to this.

S

Board to this council and amendment to bloomington municipal code, ten point.

S

Zero eight point: one four zero to provide for those two.

S

Limited exceptions to the connection fee. We have doris sims here this evening, who.

S

Can answer any questions with regards to the exception for affordable housing and.

S

We also have members of staff from cbu who can answer any questions that might.

S

Relate to the other waiver for septic systems. Thank you all right. Thank you.

A

Very much and first question mister, sir brown: no, I don't believe that it is.

S

Geographically restricted, because if we find we, if this, if the director of.

S

Utilities find that abandoning a septic system to connect to a closely located.

S

Sewer system, our sewer system, if he finds that that would protect our ms4.

S

Then that waiver, if applied for, is something that the director would have.

S

The ability to grant so with those waivers be in certain.

J

Affordable areas where they're trying to encourage people to convert to sewer or.

J

Or not like you do have an idea of how it would be used and we're. I'm sorry now.

S

You're going to affordable housing, no I'm talking about septic connection.

J

And would you would you look at a income area for that waiver fee to encourage a.

J

Larger number to connect to a sewer rather than septic vic kelson utilities.

M

Director for the the the purpose of the septic tank waiver proposal- and it's it.

M

Would be to allow us to have the discretion to to waive a connection fee.

M

For someone who's replacing a septic tank, the reason for that is that it.

M

Benefits the ems for the municipal, separate storm sewer system, so.

M

One of the vehicles that we've talked about for implementing this is that.

M

Since it benefits the ms 4 that the ms 4 could reimburse the sewer utility for.

M

The lost revenue that would be one mechanism for for implementing it.

M

Because really, what we're doing by doing this is saving water early, sorry, saving.

M

Money for the stormwater program, so the the reason for it isn't about the cost.

M

Of a building a home, most of the septic tanks that lie within the city are in.

M

Are associated with much older developments, and so those tend to be.

M

Lower income resonator hoods, but it's not it's not directly connected to any.

M

Particular economic program: it doesn't often extend a line and then not enough.

J

People want to hook on, and this could be an incentive. It certainly could be an.

M

Incentive, certainly because the connection fee is around $2,800, so the.

M

The cost of getting sewer in a neighborhood that doesn't have it it's.

M

The cost of the sewer main it's the cost of the sewer lateral that goes from the.

M

Main to your home and it's the cost of the connection fee, so in most cases.

M

Those first two costs are larger than the kids and the connection fee, but this.

M

Certainly would incentivize connections, especially in denser neighborhoods, where.

M

People are on septic and there's there are a number of them in the city as far.

M

As outside the city, chris alluded to the possibility that waivers for the ms4.

M

Program might be granted to customers outside the city, but they don't pay our.

M

Stormwater fee they pay the county stormwater fee, so it would be if we.

M

Wanted to incentivize and to work with our county partners to incentivize.

M

Outside, if we execute this program by having the ms4 reimburse, then the.

M

County's, the county could have a replacement program where they would.

M

Could offset part of the connection fee? I don't know what ms4 is municipal.

M

Separate storm sewer system ditches it's the.

J

Storm, it's the storm, ditches storm drains and called you know: storm pipes.

M

Inlets so forth, so how is that all connected? I don't get why the storm.

J

Water is connected to the sewer hookup, because when a septic tank fails raw.

M

Sewage gets into the gets into the flows across the landscape or through the.

M

Subsurface into streams and into edges, huh that's and that's bad. Yes,.

M

So the purpose of it is to help keep our storm or keep our stormwater program.

M

Helped us with surface water quality in the city and leaving the city, and we.

M

Could work with presumably worth county partners to to have them execute a.

M

Similar program outside okay, thanks counts, remember: piedmont, smith, yeah. I.

C

Wanted to ask for clarification, the response given to councilmember stir.

C

Bomb in the ordinance language, for both the waiver for affordable housing and.

C

The waiver for a resident abandoning a septic system, it says within the city.

C

Limits am I yes, it does reading that that might I had thought it was for both.

M

But for the for the the affordable housing waiver, it's all inside the city.

M

Limits- and we had talked about it- both ways for the ms4 or the the septic tank.

M

Waiver, but I guess the final version of the language had it inside the city and.

M

I apologize for that and certainly if this council wishes to make that clearer,.

S

The last clause of subsection b talks about or to otherwise protected.

S

Municipal separate storm sewer system and the way I interpret that means that.

S

If somebody from outside of the city were to apply because their septic.

S

System is, is failing, and the director determined that allowing them to hook up.

S

Without the connection fee, in order to encourage them.

S

To abandon that septic system would in fact protect the storm system, storm.

S

Water system, then that would be an opportunity for a waiver to be granted.

S

So it's not limited strictly to inside the city, but it says that it, the.

C

Application for a waiver by an owner of real property, which is located within.

C

The city limits of the city of bloomington, correct and then I'm so it can be. Somebody who owns a property in the city.

C

But they're talking about a property outside the city to get the waiver that.

C

Doesn't make any sense, I don't read the with the or at the end.

S

Or the application being provided or someone who's applying outside the city.

S

Who the director would determine that the abandonment of the septic system.

S

Would protect the ms4 so that the at the or clause does not have the specific.

S

Language for requiring city-owned real estate, we can, we can clarify and amend.

S

The language that's what the council wishes. Certainly, if there's confusion.

S

Then it seems to me we should change the language yeah. If the intention is to.

C

Allow it for properties that are actually located outside the city. I.

C

Think that needs to be more clear, and certainly I think we had one other.

C

Questions you know so the ordinance says this would be at the discretion of the.

C

Director, so that that makes me a little uncomfortable that sounds like you know,.

C

Hey, if it's my buddy, then yes, and if it's somebody, that's my archenemy, then.

C

No, I mean not that you would do that, but I don't like that: wiggle room well, the.

M

The reason that the language and we've got a lot of things that are done that.

M

Way that have where there's discretion the.

M

Discretion to the utility, if the, if the utility makes a determination, then the.

M

Director signs off on it in some cases, if it's, if it's an issue, that's.

M

Important enough, then we go to our board and ask them to to you know to weigh in.

M

On it as well, in this case, we would be the the the notion is that all the.

M

Legislation, that's before you does is offer us the the ability to issue a.

M

Waiver, if the circumstances are warranted according to the to the rules.

M

In the in the legislation, we still have to implement the process for that and if.

M

Someone failed to execute the process, then they wouldn't be eligible for the.

M

Waiver necessarily because they had failed to execute the process properly.

M

So the the the the detailed implementation of it would be done by.

M

Our staff, working with our board, all that council is saying, is it's okay with.

M

Us, if you waive this fee in these special circumstances, but it's up but.

M

Then we would work with our board to determine how that was actually done.

M

Okay, so it's not just asked of it. No, it's not just asking that's the process.

M

Yeah, there's a process. Okay, thank you.

P

Mr. kelson, I think we're well mr. wheeler I'd like to emphasize what.

P

Councilman repeat mod smith made as well, and that is that I I see this as having.

P

Real impact and utility on outside the city, particularly in the lake monroe.

P

Watershed, I don't know it's feasibility, I suppose again, mr. kelson, it has to do.

P

With whether residences are closed by a sewer, a sanitary sewer with an.

P

Exactly is that correct? Yes, you you well what there's two parts of that one as if.

M

There's a sewer near you, you always have the option, but if you're on septic the.

M

The the rule is that- and this is a health department, if you have a septic.

M

Tank that fails and your property, your home, is within 300 feet of a sewer.

M

You must connect to the sewer they will. They will not give you a permit for a.

M

New septic tank, but that must be complained driven right. I mean how often.

P

Does I mean, does health department? How would you know if a if a septic fails.

P

Many I've seen them fail in the county and it goes unnoticed for a long long.

P

Time yeah, it can go unnoticed for long time, but but but the the execution of it.

M

I think you started to ask about the execution of that. As I said, you know we.

M

We recognize that that our county partners also have a stormwater utility.

M

So if we were, you know one way to implement, this would be to have the.

M

Stormwater utilities for city and county, you know fund the fund, the waivers.

M

Basically- and it may be that the county would say well we're only going to pay.

M

Half or something like that, but it would allow them the ability to do that as.

M

Well, if the language allows it for outs and for outside customers. So but it's a.

M

Matter of how we implement it- okay, I was thinking about something we talked about.

P

During budget, which was that you were part of the appropriations room.

P

E-Utilities was for a gauge on the north fork of the so cray-cray south fork.

P

South fork: okay, pardon me south fork of of cell creek and would.

P

That be able to determine if it was receiving sewer overflow as a post.

P

Agricultural runoff, or would we need something more refined? I've heard of a.

P

Super gauge, where you can have you know we you, you monitor much more in terms of.

P

Specificity, in other words, I'm trying to get to the inputs of what's affecting.

P

Our lake and whether this has utility in terms of addressing that so the location.

M

That's been recommended for the super gage is actually taking flow, mostly from.

M

A different county, so it really wouldn't be affected by this legislation at all.

M

That said, there are certainly certainly areas in the county that, where they have.

M

A stormwater utility and there may or may not be sewer nearby where, where they.

M

Could get people off of septic if there were if there are a way to provide the.

M

Service out there, okay, and that would of course, help lake monroe yeah. Okay, thanks.

P

Thank you accounts. Remember, granger one is for mr. kelson. Do we have a sense of.

L

How many septics are in the city limits? I don't know existence. I don't know the.

M

Number of septic tanks that are in the city, the estimates, vary, it's not a huge.

M

Number I do know that in the past two years respectively, we've had three new.

M

Sewer connections for people who are abandoning septic tanks in one in 2017.

M

We had eight in 2018, so it's not it's not a huge economic impact on us. One.

M

Expects that that would probably be the going rate of how fast they would they.

M

Would be, and and based on, the availability of sewer and so forth,.

M

However, as you may know, cbu and hand have been working together with a.

M

Project that is largely grant funded by hand to build a new sewer that serves.

M

The broadview neighbor portion of the broadview neighborhood over on ralston.

M

Drive, we have had a note. We have a number of customers who are excited.

M

Water customers, obviously but a number of residents there who are excited about.

M

The spective being able to get away from their septic tanks and connect to that that new sewer that's going in so that's.

M

One neighborhood that might benefit from the septic tank waiver sure. Thank you. My.

L

Other question was for miss sims and I'm just wondering if the guidelines have.

L

Been established and if you could share those for the waivers.

T

Doris sims, director housing, they were development, so this is not a new program.

T

For handy utilities, in fact, it's been going on for twenty years that an.

T

Application is made for the first part of it or an applicant, particularly a.

T

Not-For-Profit developer, like habitat for humanity, fills out a simple.

T

Application and we review it and we make the determination that yet it's a.

T

Non-Profit developer and the housing that they're developing is going to go.

T

For low-income people we passed that on to utilities and then they do the waiver.

T

It just came to our attention within the last year that hadn't been codified and.

T

So that's why it's coming to you tonight, but we have been doing it all along for.

T

Habitat for humanity, when bloomington restorations were.

T

Building housing, we did it for bloomington restoration, brewin to.

T

Restoration, so that part a part, a is not new and then, as that just mentioned, one.

T

Of the things that we do in cooperation with utilities department is that we go.

T

Into areas of the city that still have septic systems- and we put in sewer that.

T

We're right now, working with in cooperation to put sewers in streets and.

T

Broadview, where that a lot of the residents still have septic systems with.

T

Our community development block grant dollars, but what we cannot pay for is.

T

Hook on fees, the federal government does not allow us to do that. So we came to.

T

Utilities with those residents and say, is there any way that you can help them.

T

That we're putting sewers in we're putting in the laterals or putting in a.

T

Lift station everything's going in, but in order to hook onto the sewer it is.

T

That hook on fee of twenty three hundred dollars, that a lot of those little.

T

Income residents cannot afford, and so that's why there's part a and.

T

Part b to this amendment for before you tonight.

T

That's perfect. Thank you. Thank you. Thank you. Any other questions from council and.

A

Seeing none do we have any public comment this evening with respect to.

A

This, please feel free to approach the podium state, your name and sign in.

A

A

You want to kind of queue up. We will welcome your comment. You see the sign-up.

A

Sheet there hi I'm lindsey brown. Thank you so much.

U

I'm a resident in role of in broad view on ralston drive and I'm impacted by the.

U

City line that was installed recently myself and other neighbors on the street.

U

Cannot afford this fee $2,800? I went to the city utilities department myself to.

U

Ask about it because I'm very interested in having having the city line installed.

U

Because I'm not familiar with septic, I grew up in a neighborhood that didn't.

U

Have septic so I've been grappling with how to deal with his tank in my backyard.

U

And so it would be very helpful to have this. We were in place when I talked to.

U

The department they said that they're working on getting this resolved and a.

U

Waiver in place for us- and that was very exciting to hear, but it had to pass.

U

Through the council first, so I'm advocating for myself and my neighbors, who have also mentioned that they can't afford this fee as well.

U

Thank you additional comments.

V

I'm denise valkyrie, I'm the president of the broadview neighborhood association.

V

And precinct committeeman for a precinct five there as well and told people that.

V

I'd be here representing them in their comments, I'm grateful to hand for.

V

Helping habitat for humanity connects to the sewers. I live in a habitat for.

V

Humanity home in this neighborhood myself, I've lived in the county and.

V

Experienced septic failure and the grass does grow greener, but I couldn't let my.

V

Children play in the yard, so I couldn't keep my pets in the yard either. The.

V

People that I've spoken to you in my neighborhood have asked me to pass along.

V

That they really hope that these fees are waived because otherwise they.

V

Couldn't afford to connect to the sewer system? Our neighborhood is one of the.

V

Neighborhoods that have been used as an example of affordable living. It would.

V

Push some of these people out because they wouldn't be able to connect when.

V

They're septics failed. That's about all. I have to say so. Thank you. Thank you.

A

Anyone else from the public this evening.

A

Seems like all the commenters are over here to this side tonight. No, no! Take.

A

Your time, yes, my name is neil heidler and I'm also.

W

A resident of the broadview neighborhood I live on milton drive, and I just you.

W

Know I'm looking very much looking forward to connecting to the new city.

W

Sewer that's running behind my house. I just say that the reality for me is that.

W

We're it's $2,300, I think the fee is that right, yeah! Well we're looking at.

W

That just I just wanted to throw out some numbers just to give you an idea of.

W

What we're talking about, which is, I have a it's, been called a cistern I'll have.

W

To pump it out I'll have to fill it with fill which, and it.

W

In a very awkward location, so this is gonna, be a very labor-intensive, possibly.

W

Expensive process, it's a large tank and then I'll have to pay for the plumbing.

W

To the outside of the house and dig a trench back there, and I was trying to.

J

Get an estimate for this work just before I went on vacation at the end of.

W

August and failed to do that, but I just I'm guessing that the total cost will be.

W

In the $10,000 area for me and that's you know significant hardship and so but.

W

I think it's you know this just sounds like a very you know: good solid concept.

W

Forward the community and for you know, just improving environmental quality. The.

W

You know right quality of the runoff, that's going to lake monroe and so on. So.

W

It just seems, like a really, you know great idea, to allow this waiver and.

W

Thank you. Thank you very much. Anyone else, okay, seeing them, we are back to.

A

Council for a final comment: councilmember rallo had his hand up.

A

First, thank you. I think this is a fantastic idea and I.

P

Think miss simms for advocating to that to mr. kelson and his board to.

P

Incorporate this, I I think that for low-income residents, it's very very.

P

Important, I'm also very much in favor of trying to determine where the point.

P

Sources for runoff are for that are affecting light quality. I know that's.

P

Going to be a long process, but I think that this could be part of the the.

P

Answer to it at least one part of it, and so the sooner we can expedite this, the.

P

Better there's much more work to do, but I'm.

P

Totally in favor of this, thank you. Thank you, councilmember granger thank.

L

You I too am in favor, but I would like to encourage mr. kelson to work with our.

L

County partners to encourage the abandonment of septic tanks, because I.

L

Think that would be better for everyone and to encourage mr. wheeler to clarify.

L

Section two: I don't even see him. Oh, there is section 2 subsection b because.

L

It it is confusing. Thank you. Thank you. Councilmember simms and thanks to staff.

F

For the presentation, I'm glad that we are able to consider.

F

This, and particularly from the from codifying some of the rules and some of.

F

The things that we've done in the past- and I think many of us already know that.

F

Some of the habitat housing projects and then some of the individual houses that.

F

Those hookups were already waived as part of the affordability plan, so I'm.

F

Glad too, really that we're codifying that and obviously it's a good.

F

Municipality move dealing with failed, septics or folks that we really want to.

F

Help control that waste stream- I think we will be able to or I will be able to.

F

Support this, but one other point that I really want to make and I've heard a.

F

Mention of $2,800 for hookup. Well, this is the result of one of our first.

F

Discussions on cost of study analysis because and correct me if I'm wrong.

F

Those hooker fees used to be about $750 when they really cost us a lot more to.

F

Do so I know, there's some cost increases but they're necessary for maintenance.

F

And how we operate, but these are the things when we ask for cost to study.

F

Analysis that we hope to show up that that is actually the city is doing it.

F

For this amount, which is many times less than what it actually cost and so and I.

F

Think, that's it's a good ordinance. Thank you. Thank you.

A

Anyone else from council wish to make a comment before we councilmember stir.

A

Bomb yeah. I think this is a great idea and I know broad use waited a long time.

J

And this is a excellent step and going even farther to make it easy to hook.

J

Those sewers up, I think, maybe we should do a little clarification of the.

J

Language, so that we're more free to do county cooperation and it's hard to.

J

Anticipate that it's pretty easy to know when something's failing and someone.

J

Needs to help it to not be bound so that you can't be flexible, that there.

J

Probably is some language to be added, but for all the broad view, residents.

J

Thank you for this and for the future, the cons that need to happen. Thank you.

J

For this and for the affordable house work, that's that's great. All right.

A

Anyone else all right, let me start to my right with councilmember rolla. That's.

H

Your left, which hand is this, I don't know it's sleep deprivation, I'm also.

A

Like a planning commission, you'll have to excuse me right. Yes, wait start over.

A

No please! Yes! Yes! Yes! Yes! Yes! Yes, yes and that's noon, animus! Eight! Zero! Thank.

A

You to everyone- and that concludes our business for this evening, who you have a.

A

Motion to adjourn yes, we're done.

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