CC MIN 06072022 - Laserfiche WebLink

costs. She added the one-time costs are a rate smoothing because if the City does not offset the costs the ratepayers will have to pay for them. Mayor Brown seconded the motion. Mayor Brown reported from subcommittee meetings it will be a bumpy road ahead because SB 1383, while done for the right reasons, is expensive. She supported a nexus study to see what the three trucks traveling every street weekly does to road conditions. She advised Traffic Impact Fees are a part of new projects. Councilmember Arkin agreed SB 1383 will be expensive. She advised the majority of the funds should go towards smoothing rates because it is taxpayer money and should be returned more directly. She noted many things damage the road, citing delivery trucks as an example. Councilmember Arkin advised that the $2 million from the fund which went into the General Fund is helping with the roads. Mayor Brown reported the Subcommittee did have the data about rate smoothing and noted the fund balance can be spent very quickly. Councilmember Testa agreed that ratepayer money should go back to ratepayers and roads are a weak justification for putting money into the General Fund. She called for all of the money to toward rate smoothing. She advised the $20,000 for the study opens the door for more rate increases. Councilmember Narum advised she would like a nexus study because no one knows how much wear the trucks add to the road. She explained that paying one-time costs is rate smoothing because otherwise they would be passed on to the customers. She expressed discomfort at smoothing rates like EBCE tried in 2012 and customers now see very large increases. She advised paying one-time costs puts money back into rate payers' pockets. Councilmember Arkin advised she would be comfortable with what staff has proposed were it not for the $2 million that went to the General Fund. In response to Councilmember Narum, Councilmember Arkin advised she would be agreeable to an amended motion keeping the Nexus study but eliminating road maintenance as a permissible fund allocation. Councilmember Narum amended her motion to not include road maintenance as a permissible use of the funds and reduced the maximum cost of the Nexus study down to the staff-recommended $20,000. Mayor Brown seconded the amended motion. She noted she and Councilmembers Testa and Narum were on the City Council in 2020 and have responsibility for the $2 million going to the General Fund. City Manager Beaudin noted this is simply the framework of the allocation plan. MOTION: It was m/s by Narum/Brown to adopt the allocation plan, with the elimination of street maintenance costs as a permissible allocation, approval of a $20,000 nexus study on road impacts, and preference given to one-time costs when allocating funds. Motion passed by the following vote: Ayes: Councilmembers Arkin, Narum, Testa, Mayor Brown Noes: None Absent: Councilmember Balch City Council Minutes Page 6 of 11 June 7, 2022