minpws-fin 07-06-21 - Laserfiche WebLink

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Councilmember Shachner inquired whether the current water rate was not sustainable due to people using less water. Mr. McMahon noted that nationwide, utilities are seeing a 24% decline in water usage annually per capita. Joe Crea noted that the declines have begun to level out over the last 6 years, and that the industry will begin to levelized soon. Engineer Papke reviewed improvements Lakewood has made over the past 10 years and the $60 million dollars of investment already put into the project. The Public Works Department has been working to separate the sanitary and overflow sewers throughout the city while completing street repairs. The city's high rate treatment facility is ahead of schedule in the construction process and should open in the fall. The current IWWIP plan requires $247 million in capital expenditures. Operational and staffing needs are likely to accompany that capital investment. A trial period of one year will occur at the high rate treatment plant with the use of existing staffing. Councilmember Kepple questioned whether the project team considered global warming factors in its analysis. The team indicated those factors are built into the analysis, and how they affect the system requires the city's plan to remain flexible. Councilmember Shachner asked, absent the $25 million in funding from ARPA, how the IWWIP proposal would be funded. Mr. McMahon & Mr. Crea indicated that it would be funded with the rates on the books currently, with a likely 10% increase in water rates each year, continuing on a consumption basis. Councilmember Rader stated that he is not yet comfortable with decreasing the water rate of industrial users proposed in the IWWIP and needed further clarification. Mayor George spoke to the $43 million Lakewood would be receiving from ARPA, and how $25 million of it is being proposed to be put toward Clean Water Lakewood. She stated that its use would bring down the current approved rates for every person in Lakewood in 2022 & 2023. Mr. Crea explained the sewer capital needs, highlighting the miles of sewer and water pipes that need to be fixed along with the wastewater treatment plant. He further elaborated on how the system can be changed to recover costs via an impervious surface fee, which helps the city to not rely on water usage. He explained how the impervious surface fee is calculated based on the use of equivalent residential units (ERUs). Most residential customers in Lakewood have a homogenous water/sewer footprint due to similar lot sizes. All residential ERUs would pay $2/month, with commercial properties paying $2 per ERU that fits on the property. Mr. McMahon explained the use of potential credit systems to be considered and implemented in the future. Co-Chair Rader recognized members of the Tree Education and Advisory Board(TEAB) and invited them to speak. 2