City of Kalamazoo - January 8, 2026 Utility Policy Committee Meeting

Updated about 20 hours ago

The UPC returns to consider water rates, affordability programs, and capital improvements. The committee reviews the water affordability program, noting its reliance on grant funding and plans for future sustainability. They also discuss the recent approval of adjusted water rates and the impact of capital improvement projects, such as lead service line replacements and station consolidations. The meeting addresses the need to align financial policies with actual accounting practices and considers the broader implications of these changes on the community. Overall, the meeting highlights the committee's commitment to ensuring access to affordable water and maintaining transparency in its operations.

Chapters

Call to Order (00:00:47)
The meeting was called to order by the chair of the utility policy committee.

The killing utility policy committee meeting was officially called to order by the chair, marking the beginning of the session.
Approval of Agenda (00:00:55)
The agenda was set with the addition of a discussion on the affordability program.

A motion was made and seconded to accept the agenda with the modification of adding information on the affordability program. The motion carried unanimously with a vote of six to zero.
Introductions and Welcome (00:01:47)
Members and guests were welcomed and introduced.

The chair welcomed everyone present at the meeting and noted that all attendees were familiar with each other.
Approval of Minutes (00:02:11)
Minutes from the previous meeting were approved as presented.

A motion was made and seconded to accept the minutes from the previous meeting as presented. The motion carried unanimously with a vote of six to zero.
Public Comment (00:02:37)
Opportunity for public comment was provided, with no comments received.

The chair opened the floor for public comments, inviting both in-person and online attendees to participate. No public comments were made during this session.
Unfinished Business - Report on City Commission Action (00:03:10)
Updates on city commission actions regarding water rates and the affordability program were discussed.

Detailed updates were provided on recent city commission actions, including the approval of new water rates and discussions on the water affordability program. The meeting recounted presentations given to the city commission and the resulting decisions, including the implementation of new water rates and adjustments to the water affordability program. Discussions also covered the impacts of these changes and the importance of maintaining the affordability program.
Unfinished Business - Capital Improvement Plan (00:19:02)
Updates on ongoing capital improvement projects were reviewed.

The meeting reviewed the status of various capital improvement projects, including station consolidations, lead service line replacements, and water main projects. The progress of these projects and their impact on the water system were discussed in detail.
New Business - Meeting Dates (00:28:01)
Proposed meeting dates for the year were approved.

The proposed meeting dates for the year were discussed and approved. The dates will continue to follow the pattern from the previous year, and arrangements will be made to confirm venue availability.
New Business - Utility Financial Policy Amendment (00:30:06)
Discussion on potential amendments to the utility financial policy was initiated.

The group discussed potential amendments to the utility financial policy to align it with current rate calculation practices. The discrepancies between the existing policy and the rate calculation methods were highlighted, and steps were outlined to address these issues.
Discussion on Cash and Investments Policy (00:35:17)
Discussion on the calculation of cash and investments in financial policy, considering grant funding and its impact on rates.

The committee discussed the importance of accurately calculating cash and investments in the financial policy, especially considering the substantial grant funding received. It was noted that relying solely on cash and investments could have led to higher rate increases. The policy may need to be broadened to better align with current financial realities, taking into account assets, liabilities, and grant funding, to avoid unnecessary fluctuations in rates.
Proposal to Review Financial Policy Alignment (00:38:59)
Proposal to consider modifying the financial policy to align with actual rate calculations, involving city finance and consultants.

A proposal was made to review the current financial policy and consider modifications to ensure alignment with how rates are calculated, especially in light of recent grant funding and capital projects. It was suggested to involve city finance officials and consultants, like Stantec, to determine if policy tweaks are necessary. This proposal aims to address any disconnect between policy and practice.
Water Contract Checklist Review (00:44:01)
Review of the water contract checklist for annual compliance and understanding of UPC responsibilities.

The committee reviewed the water contract checklist as part of their annual responsibilities. This checklist includes key responsibilities regarding the oversight of water finance, operations, and policy compliance. The review serves to ensure that the committee is fulfilling its duties and aligning with contractual obligations.
Call to Action for Policy Alignment (01:00:00)
Call to action for aligning policy with real-world practices, involving consultants and CFO discussions.

During the meeting, there was a call to align current financial policies with the real-world practices and rate calculations. This involves setting up discussions with consultants like Stantec and the city CFO to explore possible modifications to the policy to better reflect the financial operations and grant conditions.
Approval of Professional Service Agreements (01:05:05)
Approval of professional service agreements and associated rates for consultants involved with the UPC.

The committee discussed and approved the professional service agreements and hourly rates for consultants working with the Utility Policy Committee (UPC). The approval process considered the value and necessity of these services in supporting the committee's functions. There was a note on the importance of aligning consultant services with budgetary allowances and ensuring rates reflect current needs.
Motion to Approve Payment of Meridian LLC Invoice (01:09:01)
The city received approvals for payments, including a hard copy. A motion by Member Anderson, seconded by Member Plum, passed 6-0 with one abstention, approving the payment of Meridian LLC invoice number 00.

Approvals for payments were received by the city, including one in hard copy. A motion was made by Member Anderson, seconded by Member Plum, to approve the payment of the Meridian LLC invoice number 00. The motion was carried with six votes in favor, none against, and one abstention.
Approval of Hefner Group LLC Invoices (01:10:28)
Member Anderson moved to approve two Hefner Group LLC invoices, seconded by Member Crumbs. The motion carried 6-0 with one abstention.

A motion was made by Member Anderson to approve two invoices from Hefner Group LLC, which was seconded by Member Crumbs. The motion carried with six votes in favor, no votes against, and one abstention.
Public Comments (01:11:17)
Various members of the public and committee expressed gratitude for the work done, discussed accounting inconsistencies, and suggested improvements for public information dissemination.

During the public comments section, members of the public and committee expressed appreciation for the ongoing work, specifically praising the efforts of the UPC and other members. There was a discussion about the inconsistencies in accounting reports and the importance of accurate public information. Suggestions were made to tweak accounting software to reduce inconsistencies. Members reiterated the importance of transparency and communication with the public.
Discussion on Water Affordability Program and Billing (01:13:23)
Discussion on the water affordability program, billing issues, and the need for consistent public information. Concerns about affordability evaluation frequency and property tax hardship exemptions were raised.

The meeting included a discussion on the water affordability program and related billing issues. One member questioned the frequency of evaluations for the program, comparing it to property tax hardship exemptions that are assessed annually. There was also a discussion about the importance of public awareness regarding the water affordability program and concerns about inconsistencies in billing.
Committee Comments and Questions (01:18:54)
Committee members discussed water leakage policy, rental units, and expansion projects. Questions about access to water for emergencies and updates on expansion projects were raised.

Committee members raised questions about the water leakage policy and its application to rental units and commercial properties. There were inquiries about expansion projects, particularly concerning access to water for emergencies such as large-scale fires related to battery energy storage systems. Members requested updates on the progress of these projects and sought clarity on who would be responsible for installations.