City of Kalamazoo - March 12, 2026 Utility Policy Committee Meeting

Updated about 10 hours ago

The Committee considers updates on the water system, financial reports, and potential expansions of water service. The meeting included a detailed report from James Baker on the state of the water system, highlighting water quality, consumption, and infrastructure improvements. Financial summaries were presented, showing budget adherence and future capital needs. Additionally, the committee reviewed a petition for water service expansion in Comstock Township's Carriage Estates area, noting progress on mandatory connection ordinances and resident petitions. The meeting concluded with a discussion on financial policy amendments and the necessity of aligning existing policies with operational practices.

Chapters

Call to Order (00:00:19)
The meeting was called to order by the chair, marking the official start of the session.

The chair called the meeting to order, signaling the beginning of the session and the start of official business.
Approval of Agenda (00:00:33)
The agenda was set and approved with suggestions for including the director's report.

The agenda for the meeting was set and approved. Member Chamberlain suggested tweaks to the template to include the director's report. A motion to accept the agenda was moved, supported, discussed, and carried.
Introductions and Guest Recognition (00:01:15)
Members introduced themselves, including those attending online, to establish familiarity.

Members present and online introduced themselves. Notable guests included Peter Hefner, Mark Elliot, Libby Hiney Cogswell, and others. The introductions were aimed at recognizing all attendees and establishing familiarity among participants.
Approval of Minutes (00:03:11)
The minutes from the previous meeting were reviewed and approved by the board.

The minutes from the previous meeting were presented for approval. A motion to accept the minutes was made, seconded, and carried unanimously, indicating consensus among the members on the accuracy of the recorded minutes.
Public Comments (00:04:03)
The floor was opened for public comments, but no one came forward to speak.

The chair opened the floor for any public comments. Despite the invitation, there were no public comments made at this time, and the meeting proceeded to the next agenda item.
Director's Report (00:04:19)
The director's report covered water system performance, asset management, and future projects.

James delivered the director's report, covering various aspects of the water system. Topics included water supply rates, water quality complaints, and asset management. Key points were the growth in system capacity, the importance of iron removal, and ongoing investment in infrastructure. The report emphasized maintaining and expanding the water system to meet future demands.
Financial Report (00:21:06)
The financial report reviewed budget performance, expenditures, and revenue sources.

Peter presented the financial report, summarizing revenues and expenditures. The report highlighted that expenditures were within budget, and revenues were close to target. Capital financing and debt service were discussed, with explanations on how bond sales are managed to support ongoing and future projects. The report provided a comprehensive view of the financial health of the water system.
Financial Report Overview (00:35:07)
A detailed review of the financial report, highlighting increases in capital outlay, internal charges, and wages.

The meeting began with an overview of the financial report, where it was noted that capital outlay has increased from the prior year, chemicals are slightly down, internal charges have decreased, debt service has increased, and wages and benefits have significantly risen. There was an anomaly in the wages line from last year being negative to this year being positive, possibly due to year-end adjustments.
Discussion on Frequency of Financial Updates (00:37:29)
The committee discussed whether to have monthly financial updates or if quarterly updates were sufficient.

The committee debated the need for monthly financial updates, considering the current quarterly updates. It was noted that city staff have access to all the raw data and can provide direct presentations. The combination of city financial reports and Peter's summaries was considered adequate.
City Commission Actions and Policy Updates (00:42:22)
The meeting addressed the need for updates on city commission actions affecting the water utility policy.

There was a discussion about ensuring the director and staff have time to address any policy level actions by the city commission that might affect the water utility. It was suggested that there should be a mechanism to bring any such actions back to the committee for updates.
Unfinished Business: Utility Financial Policy Amendment (00:44:09)
Continued discussion on aligning the utility financial policy with current practices, involving Stantec and city staff.

The committee revisited the need to align the utility financial policy with the calculations currently being conducted. It was agreed that Stantec, along with city staff, would develop a proposal to bring back to the committee.
New Business: Carriage Estates Petition (00:46:06)
Discussion regarding the extension of water services to the Carriage Estates area, including petition and ordinance requirements.

The committee discussed the ongoing process to extend water services to the Carriage Estates area in Comstock Township. The residents have shown interest and are circulating a petition for the extension. The township is working on an ordinance to require mandatory connection upon well failure.
Professional Services Invoices Approval (00:54:11)
Approval of invoices from Hefner Group LLC and Main and Meridian for professional services rendered.

The committee reviewed and approved several invoices for professional services from Hefner Group LLC and Main and Meridian. The motion was carried with one abstention.
Committee Member and Public Comments (00:56:57)
Comments from committee members and public attendees, including remarks on population growth and utility policies.

Committee members and public attendees provided comments and updates. Topics included population growth trends in the county, the effectiveness of financial summaries, and the importance of maintaining public interest in utility operations.