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WATER Cities see easing in proposed water-rate hikes By Tony Boom for the Mail Tribune MailTribune.com By Tony Boom for the Mail Tribune Posted Sep. 28, 2015 @ 11:01 pm By Tony Boom for the Mail Tribune Posted Sep. 28, 2015 @ 11:01 pm » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> The Medford Water Commission has backed down on proposed 41 percent increases in wholesale water rates to pay for capital improvements after six cities challenged the methodologies used in a draft study. New calculations by HDR Engineering Inc., which prepared the study, instead propose rate increases of 13.5 percent to local cities over the next five years. “We are very happy that the consultant has been open to taking our comments and concerns and looking at the issues and making substantial changes,” said Chris Clayton, Central Point’s city manager. “If the cities hadn’t gotten together, we likely would have been asked to accept 41 percent.” Ashland, Central Point, Eagle Point, Jacksonville, Phoenix and Talent formed a coalition and raised concerns about the rate increases during study sessions held Aug. 12 and Sept. 9. Much of the easing on proposed increases resulted from changes HDR Engineering made in integrating improvements funded by system development charges, which are already paid directly to the commission for new construction in the cities. HDR also changed estimates of water loss calculations. The Medford Water Commission is not a traditional water district, and the consultant was receptive to taking that into account, Clayton said. He noted that cities incur their own expenses in delivering the water to customers. Commission spokeswoman Laura Hodnett said clear communication about integrating system improvements funded by SDCs may not have occurred when the study was first drafted. “You have data and something in the translation had a lack of communication relative to what should go into that category of donated improvements,” said Hodnett, referring to the SDCs. As for calculations of unaccounted-for water loss, a change of the computing system used by the commission resulted in later revisions to data supplied to HDR for the revised study, Hodnett said. “Our data relative to that was a little hard to come by based on the new computer system this year,” Hodnett said. A table in the latest document shows proposed costs for service charges, which includes capital construction financing, would rise from 5.5 percent in the earlier draft to 12.9 percent for water customers in Medford. Phoenix Mayor Jeff Bellah said he’s glad to see the changes in proposed rate increases. “We could absorb quite a bit of (an increase) the first year, but over the long term it would mean a pretty high increase,” Bellah said. “This isn’t a one-time thing, but once they establish the ratio of how they are going to pay, they will plug in new numbers each year.” The Medford Water Commission is undertaking $31.3 million in capital spending over the next five years. Much of the expenditure is for a four-year, $17.8 million improvement project to a sediment removal system at the Duff Treatment Plant. Revised allocated costs to the other cities for water were reduced to $1.62 million over the period. Present wholesale rates would bring in $1.47 million. The Medford Water Commission will hold a study session on water rates prior to its regularly scheduled board meeting at 12:30 p.m. Oct. 7 in the city of Medford’s Lausmann Annex, Room 151, 200 S. Ivy St. Any rate increases would be subject to a public hearing at least 60 days prior to enactment, Hodnett said. —Tony Boom is a freelance writer living in Ashland. Reach him at [email protected]. By Tony Boom for the Mail Tribune MailTribune.com By Tony Boom for the Mail Tribune Posted Sep. 28, 2015 @ 11:01 pm » Comment or view comments /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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