In an effort to get a better handle on what the city of Homer's options are for managing its costly water and sewer system, city finance director Regina Harville presented a new rate study, compiled with the assistance of a spreadsheet called Small Utilities Rates and Finances, to the city council at their Monday Committee of the Whole meeting.
With the goal of finding the most equitable rate model for the city's different classes of water and sewer customers, the SURF study found that, for the most part, the city's rates are low.
A residential customer who uses less than 2,000 gallons of water per month, for instance, currently pays $62 a month for water and sewer -- about $28 less per month than the SURF study's recommended fixed rate. It's the city's higher-usage commercial customers, however -- those businesses who use more than 10,000 gallons per month -- who are bearing the brunt of the system's cost by paying more.
Homer's water system, which last year had 1,439 customers who used more than 143 million gallons, is among the most expensive on the Kenai Peninsula, said Harville, because Homer uses a different water treatment system and have relatively low density.
"The system started out small and has gradually expanded over time," said city manager Walt Wrede. "Just to get the water from the reservoir down to town is pretty far."
"If we're going to compare rates between Homer and Soldotna, we need to be able to see where the density helps with the rate," said council member Beth Wythe. "Otherwise, it seems like were getting ripped off but the reality is that we just don't have the bodies to make it work."
Following up on a council request to find out how many potential water customers are legally required to hook into the system but haven't, Harville reported that only about 30 such people existed. Forcing them to pay for the system would generate about $24,300 for the city.
"We were imagining 200 to 300 hookups," said council member Francie Roberts. "Our hope was we could fill the system in to expand it."
Also at its Monday meeting, the council:
- Held an executive session to conduct an annual performance review for Wrede. According to state law, such an executive session can be called when the subject matter may "prejudice the reputation and character of any person, provided the person may request a public discussion."
Asked if he would like to request a public discussion, Wrede said, "I prefer it to be an executive session so that we may speak to each other candidly but I would have no problem at all if the council wanted to give the press a summary afterward."
After the executive session, which lasted approximately an hour, Wythe called Wrede's performance "good to excellent" and said council member Barbara Howard and she would begin negotiating a new two-year contract with him.
- Rejected a resolution to support construction of Phase 2 water and sewer improvements along Kachemak Drive and the use of eminent domain to secure easements in the area.
Several people who live in or own property in the Kachemak Drive neighborhood testified against the resolution, saying a scoping report completed on behalf of the city was inaccurate and that city officials, including Wrede and Public Works director Carey Meyer, have been unresponsive to their concerns that the proposed project could have unintended environmental consequences.
"This resolution is irrefutable evidence that the city is choosing to ignore the gravity and substance of our concerns," said resident Charles Burgess. "Passing this resolution tonight would grant permission to ignore the rights of property owners."
- Agreed, at the request of Wrede, to invite an Alaska Department of Transportation traffic engineer to Homer to evaluate options for installing a stoplight at the corner of Main Street and the Sterling Highway.
"Be prepared that DOT likes roundabouts," said Wrede.
- Proclaimed Feb. 14, 2009 as "Brother Asaiah Bates Day," citing the civic and spiritual leader's "selflessness and concern for others through contributions, volunteerism, monetary donations and moral support to the community."
- Postponed until their next meeting a resolution supporting the closure of portions of Peterson Bay and China Poot Bay to the harvesting of shellfish.
- Appropriated $6,940 for housing and operations expenses for a Volunteers In Service To America (VISTA) volunteer, who will be expected to help prepare the city's Economic Development Plan.
- Appropriated $248,030 from the Water and Sewer Fund reserve account toward the acquisition of land for "watershed protection purposes."
- Appointed Lou Stewart to the Parks and Recreation Advisory Commission.
Aaron Selbig can be reached at aaron.selbig@homernews.com.