Back in January 2016 Councilman Honig was seeking consensus from Council on preparing a position paper to reduce water and sewer rates and water and sewer debt on a future agenda. All seven council members were in favor. The item was on the future agenda until May, 2017. To date he has done nothing.
Wait; in 2017, [it was] at Councilman Honig’s request a Water and Sewer Utilities Option Committee be formed and they were. They were given ideas by Councilman Honig as to how they should go about doing their investigative duties to solve the utility problems.
The committee came back with six findings that were presented to Council for their appropriate action. To date, the only action that I know about is the refinancing of Utility Debt by Finance Director, Mr. Guillermo Polanco, which was accomplished before this committee’s report.
The only argument that Councilman Honig continues to make is that “Sadly, council rate structure discussions devolve into ugly arguments about which class of customer should be harmed so that another class of customer could benefit.”
The last consultant’s (Raftelis Financial Consultant’s, Inc.) [report] which was slightly modified, eliminated Class of Customers, resulting in ONE Class of Customer. It was based on an Equivalent Dwelling Unit (EDU) value of 5,100 gallons of water consumption. For every 5,100 gallons of water usage each customer would pay a demand charge, plus a usage charge per 1,000 gallons water. The Demand Charge is the same for every customer and per 1,000 gallons of water used would be charged the same for every customer. The same will apply to the sewerage demand charge. For Single Family Homes, they would be required to install a water deduct meter, which determines the amount of water they use outside their home. Every Master Metered customer has a deduct meter.
This methodology eliminates class of customer arguments, since every customer pays the same based on consumption.