Council approves rate study

Whitehouse City Council members celebrated the addition of two new water wells, which came online this week with greater output that expected, and approved water/ wastewater rate and impact fee studies at Tuesday night's regular meeting.

"Those wells are now pumping into the system, and the new water plant is online, with a few bugs to work out," said Jeff Tomlin, director of public works. Despite the bugs, the Railroad Avenue wells produced 849,000 gallons of water their first day, outdistancing expected production by almost 100 gallons per minute.

The impact of that is immediate, as Tomlin said the city purchased 154,000 gallons of water from Tyler that day as compared to an average 500,000.

With water issues a high priority for the city this past year, council gave the go-ahead for two studies that will help determine future rates and possible impact fees. Dan Jackson of Economist.com recommended the studies to council in light of three basic changes that will have a significant impact:

-- the termination of the city's water contract with Tyler

-- pursuit of alternative water sources, such as Lake Striker

-- significant expansion of water/ wastewaster treatment plants.

The rate study will help the city determine what rate structure is fair to rate payers, but also meets city's expenses.

The inclusion of an impact fee study was raised at last week's water workshop. This study will determine the maximum fee the city can charge for new development connections; it is up to the council if they choose to impose the fees, and if they want to set a rate lower than the maximum allowed.

The use of impact fees are becoming more prevalent, said Jackson, as a means of financing new growth without overburdening current tax payers.

The council approved $15,000 for the rate study and $12,500 for the impact fee study; the costs of the studies are being deferred until the next fiscal year.

In other matters, the council approved an order change of $24,000 and consequently closing documentation and project acceptance. With the order change, the city approved a final payment of $35,386.81 for this project.

Although council acknowledged the need for order changes due to unforeseen problems, Mayor Jake Jacobson asked city engineer Phil Elledge to keep the council better informed of increased charges as they occur.

Following a brief public hearing, council also approved a zoning change from single family residential and multi-family to general business - planned development. The initial request was for general business, but the Planning & Zoning Commission added the planned development. Mike Peterson said the planned development status requires a site plan and gives P&Z greater input in the project.

The property in question, located at 312 W. Main St., will be the offices of Born to Win, a Christian educational ministry currently located in Tyler.

Council also approved a resolution directing publication of its intent to issue certificates of obligation for not more than $2 million to finance wastewater system improvements in the north part of the city related to Shahan Ranch Phase II, new school facility and ETMC lift station.

Council also considered a request by Pat Phillips and Sandy Mayfield for free utility connection at 902 Hwy. 110 South. The property was annexed around 1996 and the owners (parents of Phillips and Mayfield) turned down city water and sewer at that time.

A compromise was reached, with the city providing a free sewer tap and Phillips paying for the line connecting to the tap, a water line to the alreadyinstalled water meter, and a deposit fee.

Council also set a special meeting for May 15 to canvass election returns from the May 12 voting on the park project bond issue, and appointed Louise Taylor to the Parks and Recreation Commission

The next regular meeting of the council is May 22.