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Bend Chamber Weekly E-News
July 18, 2008
By Courtney Linville, Communications Coordinator

• Bend water rates to increase sooner than expected

• City Council votes to help Shepherd’s House

• Other City Council Highlights

• In the News

• Attention Leaders: Chamber Opportunity Available

Bend water rates to increase sooner than expected

     Bend residents and businesses can expect to see an increase in water rates starting September 1 rather than January 1, 2009. In a 5-2 decision, the City Council voted to increase rates 8.25 percent, change the base water allowance from 600 cubic feet of water to 400 cubic feet of water, and stay at a uniform rate.
     City staff had proposed the increase and the base allowance change, but wanted to implement an inclining block rate for residential (single family) customers. The inclining block rate is based on the consumption of the consumer. As more water is used, the cost of the water increases within blocked increments that represent various use levels.
     Patrick Griffiths, Water Resources Coordinator, said the inclining block rate is becoming more popular as communities look at ways to conserve water. “It’s a national trend,” he said. “People are just using less water.”
     The city has $50 million in projects which include replacing water mains, adding new reservoirs, asset management, possible staffing, and conservation programs. The new rate structure is designed to encourage people to conserve water while also having heavy water consumers pay a larger share of the cost.
     The council debated greatly over the inclining block rate versus the uniform block rate while trying to decide which direction would be better for the citizens of Bend.
     Councilor Jim Clinton believes it’s only fair that everyone pay the same amount for water and was in favor of a uniform rate. “If rate payers don’t see basic fairness, then they will be reluctant in buying major rate increases,” he said. “People are not going to accept a rate structure that lacks the basic fairness of someone getting water cheaper than someone else.”
     Councilor Chris Telfer asked the council to postpone the decision so the council could have more clarity on the issue. “I’m just not sure this is the best way to pay for $50 million of deferred maintenance,” she said.
     Councilor Linda Johnson was ready to go with the inclining block rate stating it’s the responsible thing to do. “I don’t see the advantage in waiting another year,” she said. “It just digs the hole another year deeper in terms of deferred maintenance.”
     Though Councilor Mark Capell was also in favor of the inclining block rate, he stated now is not the right time to implement it. “The issue is complex enough,” he said. “Let’s keep it simple and do a lot of education.”

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City Council votes to help Shepherd’s House

     The Shepherd’s House sought help from the City Council Wednesday night as it fights to help 28 men find a place to stay. On Monday, the men will be evicted from the Shepherd’s House due to the city’s current zoning ordinance. The organization was operating at a 60 bed capacity, but must return to 32 beds per code.
     At this time, there is space available at the Bethlehem Inn, but the cost would be $12,000 to house the 28 men for three months. Executive Director Linda Johnson said the Shepherd’s House can’t afford to pay the fee because it’s already on a limited budget.
     Councilors debated if the money should be granted to the nonprofit without having public comment or more time to find viable solutions. Councilor Chris Telfer was concerned about granting any money with the city’s tight budget and recent layoffs. “We are setting a bad precedence in giving money to a nonprofit to bail them out,” she said.
     City Manager Eric King encouraged the council to have the Affordable Housing Committee take a look at the issue and then make a recommendation to the council. Many of the councilors agreed that while it would be a good idea to go to the committee, the issue required immediate action.
     Councilor Jim Clinton said, “Everyone seems to agree that the city made a mistake; so it’s the city’s responsibility to admit that it made a mistake and play a major part in the solution.”
     The City Council voted 4-2 to give King the discretion to spend up to $12,000 out of the general fund or affordable housing fund to pay for the men’s lodging at Bethlehem Inn, if other solutions could not be found by city staff.
     Councilors Chris Telfer and Mark Capell voted in opposition to this decision. Mayor Bruce Abernethy was not present for the vote.

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Other City Council Highlights

     Candidates appointed to Juniper Ridge Advisory Board- In a 6-1 decision on Wednesday night, the City Council voted to appoint Steve Petersen, John James, and Oran Teater to the Juniper Ridge Advisory Board. Five positions were available for the board. The council decided it would be prudent to fill only three at this time and continue to search for another two appointees.
     Council approves Juniper Ridge Master Plan- After eighteen months, the Juniper Ridge Master Plan has been completed and approved. Wednesday night, the City Council unanimously approved the plan and it is anxious to move forward. The city will now move ahead with financial plans, work with ODOT on traffic solutions for the area, and start work on CC&R’s.
     Council to engage open meetings- In an effort to have more discourse with the general public, the City Council will hold quarterly meetings to talk with citizens. The council will start small by holding an open work session sometime in September. Over the next several months, the council will look at various formats in which it can engage public commentary.

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In the News

     Oil continues its decline- For the first time in a month, oil prices fell below $130 a barrel Thursday. In the past few days alone, oil prices have dropped $15. Experts say prices continued to fall due to economic concerns, inflation, and the possibility U.S. oil supplies are going into storage rather than gas tanks. At this time, it’s anyone’s guess what will happen with the oil market.
     Labor Department concerned about consumer price jump- The Labor Department reported Wednesday consumer prices jumped up 1.1 percent in June, making it the second fastest increase in 26 years. The figure was much worse then experts had anticipated. The surge is blamed on rising energy costs which has cut deeply into consumers’ pockets. The highest consumer price gain occurred in 2005 after Hurricane Katrina.
     Coke prices to increase- Beware Coca-Cola drinkers, after Labor Day the prices for your drink will increase. The company announced Thursday it’s increasing prices due to higher commodities and declining U.S. sales. Coca-Cola’s profit fell 23 percent in the second quarter.
     GM designs new windshield for older drivers- Though it’s still in the research stage, older drivers might receive some help from GM in spotting road hazards. The company has designed a windshield with lasers, infrared sensors, and a camera that outlines objects which could otherwise go unnoticed. The company believes this is a smart direction to go; especially as the 65 and older crowd increases.

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