SUA Special Meeting Recap: Feb. 9, 2015

(STILLWATER, OKLA. / Feb. 18, 2015) — The Stillwater Utilities Authority met for a special meeting Monday, Feb. 9, 2015 (View agenda here.)

General Orders

a.       Raftelis presentation of the proposed water and wastewater rate alternatives from the Water and Wastewater Cost of Service Study

Raftelis Senior Manager Tom Beckley was back to present the final findings of the Water and Wastewater Cost of Service Study.

Note: Details presented during this meeting are for a smooth rate increase with an inclining block (tiered) rate for water rates and a “just in time” rate for the wastewater rates, which represent the best price for the customers.

A water alternative presented sets base charges and tiers. Base charges for ¾” meters will not increase, but all other meters will increase based on cost of service. Customers will pay a volumetric rate that corresponds to what tier their consumption falls into. Some customers might experience initial bill decease under year 1 of the alternative before seeing an increase in year 2.

Vice Chairman Joe Weaver said he was concerned about rates decreasing one year and then increasing again, which was represented instability.

Industrial customers would not be on the tier rates.

Beckley said there isn’t a lot of flexibility with rate design on the wastewater side, and all customers would see an increase.

Trustee Gina Noble asked if the rates were comparable with other cities. Beckley said he believed Muskogee was also doing a rate study.

Utilities Authority Director Dan Blankenship said tier prices are the same regardless of meter size, but the gallon allowance per tier changes, per chart:

Meter Size	Tier Design (in 1,000 gallons)
	Tier 1	Tier 2	Tier 3
3/4”	4	12	>12
1”	11	33	>33
1.5”	40	120	>120
2”	70	210	>210
3”	120	360	>360
4”	240	720	>720
6”	350	1050	>1050

Volumetric Rate	Tier 1	Tier 2	Tier 3
Inside City	$6.31	$8.20	$10.72
Outside City	$9.46	$12.30	$16.08

Blankenship said these increases were necessary to prevent more costly increases in the future.

On water rates, Noble said she’d like to see the plan start out with the increase instead of the decrease. Beckley said an option would be no increase in the first year and then a smaller (percentage) increase each year thereafter.

SUA is adjourned.

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Written by Zachary Kinder, Marketing and Public Relations