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CITY OF EAST PROVIDENCE
RHODE ISLAND
JOURNAL OF SPECIAL COUNCIL MEETING
April 12, 2017
6:30P.M.
Council Chambers, City Hall, 145 Taunton Avenue, East Providence, RI 02914
6:30 P.M. Open Session
***Note Assistant Mayor Britto and Councilwoman Sousa are absent
I. OPEN SESSION
II. CALL TO ORDER
Mayor Briden calls the meeting to order at 6:42PM.
III. SALUTE TO THE FLAG
IV. NEW BUSINESS
A. Water/Sewer Rate Study Status and Discussion
The City Manager introduces the experts providing the Council with a power point presentation and handout.
The City Manager notes that he is requesting that due to the painting of the Water Tank he would like to move the water rates along for a vote at the April 18th Council meeting. This will be done by ordinance and the first passage will take place at the April 18th meeting with the second passage on May 4th and the bond closing on May 10th. Council may choose not to decide on sewer rates right away but the water rates have a time line.
The Consultants provide a power point presentation and question and answer for the Council.
Mayor Briden thanks the City Manager, staff and consultants for a very informative outline. It provides various options. He asked if they have a recommendation based on their experience.
The Rate Consultants respond that they had talked about this and if it was up to them they would tear the band-aide off and fix it right away. However, if they were sitting as the Council they may decide on a different approach. They then reviewed the various approaches.
Councilman Botelho asked if they were aware of the water delinquency rate in the city of East Providence.
The City Manager responds that it is $1.5 million with 2000 customers.
Councilman Botelho asks if East Providence is the same as other communities as far as delinquencies.
The Rate Consultants explained that East Providence seems somewhat high in comparison. However, lots of things play into this such as the economy, demographics and the willingness of the City to force the collections and/or turn off water, put leans on or sell property. The cities that have low delinquency rates are aggressive.
Councilman Botelho notes that lower rates and higher delinquencies just don’t make sense. Newport is very comparable and they have higher water and much higher sewer.
Mayor Briden states that option number 1 seems most equitable of all options and asks if that was the consultant’s opinion as well and they indicated it was as they feel it is the most equitable way to do it or number 4 which focuses on winter consumption but they would have to hold off a couple of years until they get the sewers straightened out. The Consultants continued that doing it with monthly billing is much better than quarterly billing.
Councilman Botelho notes that he has been hearing from a lot of people complaining about their sewer rates when it comes to washing cars and filling pools etc…
The Rate Consultants state that they have the raw billing data for a 3 year comparison.
Councilman Faria states there are many residents that take great pride in watering their lawns and washing their cars and filling above ground swimming pools.
There was discussion with Council regarding water abatement ordinances and if the fourth option was the fairest then they should just do it.
The City Manager states that they don't need the sewer decision by May 10th just the water.
Councilman Botelho states the City has a history of band-aiding everything and if they are going to do it do it they should do it right the first time.
Councilman Faria states that he is not picking on any Council before them but they can see this has been kicked down the road and he agrees with both Councilman Botelho and Mayor Briden and if they are going to monthly billing in June they would be better at analyzing the data next winter and then implement this change in the spring.
Mayor Briden states then a switch would take place June 2018. The Consultants state yes somewhere around there if the Council says they want to do it now and then choose the winter quarter once they switch to monthly billing.
Mayor Briden states they may also find that because of monthly billing those who use more water in the summer start to regulate it more and it may very well help with the collections. He adds they should reduce the arrearage over time. The Rate Consultant states yes and that he believes the City will see that they also pick up leaks faster and should get less abatement requests.
The City Manager states if the Council makes that jump now and does it this year and just pulls off the band-aide then it will level off with one year of a big spike but it takes care of the issues and gets the ball moving. As far as water rates, he can have Director Coutu and the Law Department prepare an ordinance based on the water rates they have put forward which will get in front of the Council next Tuesday.
Councilman Botelho asks if they take the recommendation where would they fall on these charts and can they get in the ball park?
The Rate Consultant explains that it would put them around the median.
Thomas Riley comes to the podium and states it seems like at some point the word reduce has escaped everyone's vocabulary it doesn't just apply to the little guy but the big guy too if they just flat get rid of it.
Mayor Briden notes this will be discussed again. They will have to vote on the water rates first and then will address the sewer.
Director Coutu states they are not saying anything different. They need to move forward with the water. What they have with the sewer is really good information regarding how to get that to be more fair and equitable and fair becomes a very difficult decision. They are going to impact 50% of the base. They are getting a subsidy by the high volumetric users. They see those large increases on the low and mid volume users.
Councilman Faria agrees there is a need to take their time as a Council to process everything. He asks how long they have had the 875 cubic feet exemption with the flat rate.
Director Coutu explains that it’s been since East Providence instituted a sewer rate in the mid to late 1990s. The current volumetric rate was established by the Budget Commission to cover the waste water improvements and the thought at the time was to keep the fixed rate low so that the higher users pay for the system.
The City Manager states if he can just get the Council's pleasure, although two were not able to attend tonight, it will give them some guidance. He will have Director Coutu and the Law Department provide the ordinance on the water rates and regarding the sewer rates they will give it a week or two or four to digest the information.
V. ADJOURNMENT
A motion to Adjourn at 8:37PM is made by Councilman Botelho seconded by Councilman Faria and on a roll call vote it is unanimous.
Approved By Council: May 2, 2017
Attest: ________________
City Clerk