Cheney council OKs rate increases

Cheney’s City Council passed resolutions increasing water and sewer rates, a cost of living adjustment for the city’s firefighters and agreeing to a pair of settlement agreements with Bonneville Power Administration between BPA and its transmission customers on rates, issues and services.

After unanimous approval, Cheney utility customers will see a 5 percent increase in their base rates and usage fees, and a 2.2 percent cost of living adjustment in their sewer charges. The new water rates become effective Jan. 15, 2019 while the sewer rates begin Jan. 1.

Customers will also see a slight reduction in compost rates in 2019. Garbage and electrical rates remain unaffected.

Councilman Paul Schmidt said that by law, such rate changes must be “equal as applied to all categories,” adding he wasn’t sure how this requirement would “play out” with the new rates. Councilman John Taves felt the increases were a “reasonable compromise,” given that 25 percent rate increases had been considered.

Council unanimously approved a new three-year contract with the International Association of Fire Fighters Local 1919, signing off on a 2 percent base wage increase in 2019, 2020 and 2021 along with changes to incentive pay for emergency medical services related certifications.

In written remarks, City Administrator Mark Schuller, who was not present at the meeting, told the council that other changes included a higher deductible for the fire fighters medical plan, which also reduces the plan’s cost. There were also changes to language regarding paid family leave, with the contract coming in under the city’s budget for the fire department.

Council also unanimously approved a resolution authorizing Mayor Chris Grover to sign two settlement agreements with BPA. The first contained “terms and conditions of a negotiated settlement between the utility and its transmission customers on tariff rate modifications, transmission service issues and transmission rates” while the second dealt with “ancillary control and control area service rates for fiscal year 2020-2021.”

City attorney Stanley Schwartz told the council that the transmission issue came up during rate discussions, and essentially is an attempt to resolve a situation wherein short-time transmission system users are benefiting from long-time users rates and processes.

“Long-time purchasers (like Cheney) complained that short-timers were gaming the system,” Schwartz said. “Long-time users pay more. Short-timers game the system, causing cost shifting (to long-time users).”

Schwartz said the good news for Cheney is that rates would stabilize in 2019 and 2020, becoming more favorable to the city. By signing the agreement, the city joins 137 other users becoming part of the settlement, with 164 needed to ratify the compact.

The council also approved a resolution renewing an agreement with the Spokane YWCA to provide domestic violence victim advocacy services to Cheney Municipal Court.

Council also approved the first reading of a pair of ordinances, the first setting the city’s 2019 budget at just over $29.44 million. The second begins moving responsibility for collecting and processing business licenses from the city to the state’s Department of Revenue, something required by recent changes in state law.

Finance Director Cindy Niemeier said the move was something the city had planned on doing prior to the changes, and must now adopt the state’s model into its own codes. The biggest change is that all business licenses can now be handled and checked online, and while still remain at $30 to file, will also now include a $12 administrative fee.

Niemeier said Cheney’s codes will continue to exempt Eastern Washington University clubs, groups and other nonprofits from the licensing requirement. Businesses that make less than $2,000 a year are also exempt from filing a license — changing the city’s practice of offering a discount to such businesses.

“Now, that’s going away,” Niemeier said. “Dispute resolution will also now be done by the state.”

John McCallum can be reached at [email protected].