City Council Meeting - Cornelius

discussion. He reiterated that this was spending the City did not have the last two years, and as
part of the water rate study model, the City has been collecting more than needed to this point,
because the money was not expended. While he did not believe costs would decrease in the
future, he did not believe this would cause a tidal wave of increases. Staff believed increases
could be done incrementally and defer another year. Ms. Jones added that the utility model
projects out ten years, and when Staff input the assumptions and capital projects scheduled in
2015-2020, the model did not forecast any huge peaks in the future.
Councilor Schamp understood some elements of the City’s existing water system were in
desperate need of upgrade. He questioned whether the City was missing an opportunity to
address the needs of the system while some funds were available. He realized no one wanted
rates to increase, but at some point those repairs will need to be made. He supported holding
rates steady, but was concerned about paying a consequence down the line if the City passed
up this opportunity.
Council Heinrich believed if the City do not have to pass it on and could absorb it, it was a good
thing for the citizens especially in the current economic times. He noted Cornelius’ water rates
were reasonable compared to other cities.
Mayor Dalin recalled being on the Council when the City was backwards in the water fund and
had to pass along substantial increases to get the water and surface water funds back in line.
He confirmed with Ms. Jones that the City would not be using the money saved to pay, design
and construct the water reservoir. He would support passing a few percent increase, so it was
not a ten percent increase next time, but deferred to Staff to provide some counsel about that.
The only modification he was interested in was possibly not waiving the entire 9.5 percent, but
increasing rates a couple percent. City Manager Drake explained that Hillsboro is separating
their water rate study for Cornelius, their other wholesale customers, and for their customers in
town. He believed the costs associated with Cornelius are fixed. Waterlines were not being
rebuilt by the City of Hillsboro for Cornelius. The 72-inch line skirts the city on the south side
and the City draws water from three intake valves. The entire infrastructure is new. Therefore,
he believed Hillsboro’s new study, for the period of time Cornelius will be with Hillsboro, would
probably increase less than it has been.
A motion was made Councilor Orozco to approve Resolution No 2012-14, a resolution of the City
Council, the City of Cornelius, Oregon establishing certain utility rates and charges and the rate
changes become effective July 1, 2012, seconded by Councilor Crowder. Motion carried 5-0. Ayes:
Councilor Heinrich, Councilor Orozco, Councilor Crowder, Councilor Champ, and Mayor Dalin.
9. REPORTS
A. City Council Report:
Councilor Crowder reported the Farmer’s Market was on its fourth week last Sunday
with nine vendors, adding he would love to see everyone visit and support the vendors.
Cornelius City Council
Minutes-June 18, 2012 Page 6 of 9