1998-11-16 - Laserfiche WebLink

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Ms. Richards made a motion to pursue the proposal for Hinton Avenue and place the item on the next agenda, Mr. Caravati seconded the motion, and it was approved by the following vote. Ayes: Mr. Caravati, Ms. Daugherty, Ms. Richards, Mr. Toscano. Noes: Mr. Cox.. The meeting was adjourned. President~; BASEMENT CONFERENCE ROOM - November 16, 1998 Council met on this date with the following members present: Mr. Caravati, Mr. Cox, Ms. Daugherty, Ms. Richards, Mr. Toscano. WORK SESSION: CITY UTILITIES Mr. O'Connell explained that the utility session will focus on providing information to Council, but Council does need to decide whether to change the formula for the payment in lieu of taxes (PILOT) or leave it as it currently is. PAYMENT 1N LIEU OF TAXES Ms~ Rita Scott, Director of Finance~ said that the PILOT is based on the indirect cost from the annual cost allocation plan + x% of estimated revenues (from the most recent rate report). For gas, the percentage is 6.5.%, and water and sewer is 6%. Ms. Scott presented various scenarios for increasing the percentage. An additional $134,000 would be realized by increasing the percentage for gas alone to 8.5%. Mr. Toscano asked what the value of the utility service is, noting that if is was a private utility, it would pay real estate and property taxes to the City. Staff said they would have to look further into Mr. Toscano's request. Mr. Toscano said that he would support raising the PILOT for gas to 8.5% for the following reasons: the gas division is perceived to be more of an enterprise fund than the other utilities; the increased cost would be spread across the region; and it would amount to a small increase for customers. Mr. Toscano said the increased funds could be targeted to wherever Council wants, but he feels it would make sense to designate it for the capital budget. Mr. Cox said he would favor using the increase for a sustained improvement such as undergrounding of utilities. Mr. Caravati said he feels that the increase would have a minimal impact on customers, and he would support deferring the decision about how to use the funds until Council reviews the entire capital budget. It was the consensus of Council to increase the PILOT for gas to 8~5% and to put the funds in the capital budget. WATER CONSERVATION Mr. Jim Palmborg, City Utilities Manager, said that the goal of the water conservation program are: to promote policy, practices, information and technologies that improve the efficient use of water; to improve and repair the existing water distribution system; and to increase dissemination of related information through public education and public awareness programs. Responding to a question from Mr. Toscano about what -water conservation initiatives work best, Mr. Palmborg said that public education is-the basis for most efforts, though some areas are looking at water price increases.