City to hire consultants to redesign water/wastewater rates, consider stormwater separation and customer classes

City staff recommended a two‑phase approach: rescind the recent minimum fee as an immediate fix, and commission a consultant-led rate study to create an equitable, sustainable long‑term structure. Director Schultz said the city has already issued a request for qualifications and expects to use data analytics and modern modeling to explore options including a stormwater utility, lifeline rates for low‑usage households, and customer classes that separate seasonal/second homes from year‑round residents.

Schultz said many of the system’s costs are fixed — staffing, treatment plant operations and capacity — meaning usage is an imperfect proxy for stormwater impacts. He described potential longer‑term proxies such as impervious surface area and said the consultant work will include financial and engineering analyses to marry capital plans, debt schedules and analytics. "We're going to put out a bid process and see what works," Schultz said, adding the study will include public outreach and could take 9–12 months to begin formal community engagement.

Councilors asked staff to explore options raised by residents — bedroom counts, tourist surcharges and leveraging the city’s two‑tier tax program to identify full‑time residents — while cautioning that current billing software limits immediate cross‑referencing. Staff said complex cross‑referencing may be possible once vendor issues are resolved and urged patience while the technical platform is stabilized.