Title
Deferred Water Infrastructure (Goal 5)
Body
RECOMMENDED ACTION (Motion):
Staff will provide an update on the status of the latest Water Master Plan Capital Improvement Plan (CIP) update efforts and support a discussion on the City’s ongoing need for both new water distribution infrastructure and replacement of old water distribution infrastructure.
BACKGROUND:
Goal 5: Maintain Fiscal Health & Long Term Stability
Deferred Water Infrastructure
* Begin community outreach and communications regarding the long-term water rates
and the need for infrastructure replacement. Prepare for possible ballot measure to
address degraded water systems.
In 1996, voters approved a city charter amendment that returned water rates to 1994 levels with provisions that allowed a 3 percent annual increase and required voter approval for any higher increase even in a water emergency.
Section 58 of the City Charter stated: “Upon passage of this amendment to the City Charter city water rates shall be those in effect as of October 31, 1994. The commission may not increase water rates by more than 3 percent annually without a vote of the people. The commission may not declare any ordinance or resolution establishing water rates to be an emergency nor use any other means to prevent their referral to the voters.”
The charter amendment was challenged in court which essentially resulted in a 20 year roll back deferral (2014); the rate increase limitation of 3% per year stands. In January 2012, the City Commission adopted the Water System Master Plan. Over the following 16 months the City completed rates studies, conducted public outreach, formed an advisory group, conducted a public opinion poll, considered a variety of rate proposals, and finally adopted a proposal for language changes to Charter Section 58 to eliminate the 1994 water rate setback to the electors of Oregon City (Resolution 13-03).
Resolution 13-02, a measure proposed to amend Section 58 of the Oregon City Char...
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