House builders oppose new GFCs and water, sewer rates for 2019

CHELAN – The Chelan City Council had a busy meeting on Nov. 27 with a packed agenda, a series of public hearings and administrative reports had the meeting running for more than three hours.

Two weeks ago Amy Hannu representing K&L Homes  spoke in front of Council on her concerns regarding water meter costs. “The biggest thing is to make sure that these water meter hookup fees are at an affordable cost,” she said.

According to Hannu, K&L Homes has been building affordable homes in the area for the past six years and they want to continue doing so. “I talked to several people and have done some research online … in some of my findings the cost of connection for labor and materials, for most water systems reported paying $800 to $1,200 per connection … that does include water and sewer,” Hannu reported.

Such information was taken from the June 2018 Washington State Department of Health website.
However, Hannu understands that there are costs to keeping City water and sewer going. She only asks for a reasonable price, “let’s not have this at a price where people just won’t be building here.”

In charge of the proposed water and sewer rate discussion was Andy Baker of FCS Group. Back in late October, the FCS Group presented a rate study to the Council which in part evaluated the cost-of-service for water and sewer, along with General Facilities Charge (GFC).

Baker then presented a drafted resolution to the Council which sets fees to be charged for water, sewer and installation fees.

Councilmember Tim Hollinsworth brought up a concern regarding dormant, vacant properties and the fact that they pay an ongoing charge regardless of their use.

“I do not see this being addressed in the resolution,” said Hollinsworth. Baker clarified that the monthly service charges payment of such dormant properties, “go to the ongoing operational maintenance of the system, which has been constructed to serve them … they have to continue to maintain that.”

Hollingsworth wants the Council to debate at a later date the fairness of this to dormant properties in the City. He believes that such short term waiver could be a big help and it won’t affect the revenue. Councilmember Kelly Allen agreed.

Finance Director Steve Thornton lead the Proposed 2019 Final Budget public hearing by giving an overview presentation of the 2019 budget.  Thornton provided a summary of each of the City’s funds, proposed expenditures, revenues and budgets.

The Council discussed the budget during five budget workshops.  The last one was held on Nov. 6. A couple of items grabbed the attention of councilmembers during the workshops. “Three of them were in the budget and one of them was added,” said Thornton.

In early November the City received a letter from Thrive Chelan Valley. “They are budgeted for $13,000 and they are requesting an additional $7,000.” Secondly, Councilmember Ty Witt requested a moderate waste facility contribution of $13,000. Added at the Nov. 6 workshop was $30,000 towards the Pingrey Wall Mural cost share. The fourth amendment to the proposed budget includes the removal of an interfund loan repayment of $162,000 beginning in 2020.

Thornton wrapped up his presentation with a summary of all capital funds. The proposed 2018 budget will be adopted in the next City Council meeting on Dec. 18.

Chelan Mayor Mike Cooney reported that on Dec. 5. he will be meeting with County Commissioners to talk about glass recycling. Cooney will be inviting Devyn Smith and Megan Clausen, Glass to Sand at Lake Chelan founders. (More details to come)

On Dec. 12, Cooney will meet with Port of Chelan Commissioners and Director to discuss a five year economic development plan within the town.  

Next Tuesday, Dec. 4 the Chelan City Council will hold a workshop starting at 4 p.m. Some of the items are carry over from the Nov. 27 meeting.