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Water system review: rate increase, impact-fee receipts and shared well repair planned
Summary
Staff reported the city has collected more water revenue than expected this year, discussed use of impact fees and capital reserves, and said Woodland Hills must cover 40% of repair costs for a shared well with Salem City after casing damage was discovered.
Woodland Hills staff updated the committee on water revenues, impact-fee activity and a shared well that needs repair.
Chris (finance staff member) said the water fund has collected about 72% of its budget at the 58.33% point in the year, reflecting the rate increase adopted earlier to help cover bonding for line replacement. “Once again, 58.33% of the year, we’ve collected 72% of our budget,” he said.
Staff noted impact fees and nonoperating income fluctuate; income designated for system expansions typically goes to a savings account for future tanks or debt service. Chris said the impact-fee receipts are small and “either system savings account for a future tank or goes to make water payment or payments back on our… tank that’s to be put in.”
On infrastructure, staff reported a problem with the Maple Canyon well shared with Salem City. The city holds 40% ownership of that well, and Salem City discovered cloudy water and then took the well offline for inspection. A consultant’s investigation found multiple holes in the well casing. Chris said the consulting engineer is evaluating repair options — including swaging (installing repair casing pieces), sleeving with a new casing inside the old casing, or full casing replacement — and the city will be responsible for 40% of the selected repair cost. “We haven’t been using it since the middle of summer… they found that it has multiple holes in the casing,” Chris said.
Staff did not provide a final repair cost at the meeting; committee members were told the consultant will recommend a method and the city will then get a cost estimate. Chris said the city used the shared well intermittently in the past and that decisions on repair method will weigh pump performance and internal diameter impacts.
The committee discussed prioritizing smaller interim capital work in the water system — replacing failing pressure-reducing valves (PRVs) and smaller sections of water line — while staff pursue larger loan or grant funding to complete major line projects. Chris said if available borrowing capacity exists from the recent rate increase, the city may consider a larger loan to finish projects such as Maple Drive rather than raising rates again.
No formal vote was taken on repairs at the meeting. Staff were directed to continue consultations and return with cost estimates when the engineering firm issues recommendations.
