WHEREAS, 2013-2014 Seattle City Council Statement of Legislative Intent 27-1-A-1 directs Seattle Public Utilities (SPU) to develop a Strategic Business Plan to guide utility investments, service levels, and rate paths over the next six years; and

WHEREAS, the Mayor and Council desire to have the input and engagement of SPU customers in formulating the Strategic Business Plan; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section 1. Primary Goal . The primary goal for the Strategic Business Plan is to set a transparent and integrated direction for all of SPU's business lines that reflects customer values, provides rate predictability for utility customers, and results in best value for customer dollars.

Section 2. Content and Process . To attain the goal described in Section 1 above, the City will take the following approach in specifying the content of the Strategic Business Plan and the process for developing the Plan:

a. Content of the Plan . The Strategic Business Plan will contain a six-year rate path for water, drainage, wastewater, and solid waste rates so that cumulative impacts of rate and service level changes to customers are predictable and transparent. The six-year rate path will be developed by identifying, evaluating, and recommending priority reductions and additions to current utility expenditures, including (i) potential efficiencies in existing services, (ii) lower-priority existing services that may be reduced or eliminated, and (iii) prioritized new investments to respond to future needs. The impacts of these expenditure changes on services and levels of service will be clearly identified and evaluated. SPU will use this rate path as the basis for preparing future budgets and rate proposals.

b. Process for developing the Plan . The City will use a collaborative process in developing the Plan that will include the input and engagement of SPU customers, SPU staff, the Mayor's Office, and City Council.

Section 3. Customer Review Panel . A Customer Review Panel is established.

Section 4. Panel Composition . The Panel will be composed of nine members drawn from among SPU's customers. Members will be selected to ensure a balance of viewpoints regarding services and rates that are representative of the views within SPU's customer base as a whole. The membership will include representation from both residential and commercial customers.

Section 5. Appointment and Confirmation of Panel Members . The Mayor will appoint five members and the City Council will appoint four members. Panel members will be subject to confirmation by the City Council.

Section 6. Term of Appointment . The Mayor and City Council will seek to empanel the members of the Customer Review Panel by March 1, 2013. The Panel will dissolve upon Council adoption of the SPU Strategic Business Plan, or on December 31, 2014, whichever is sooner.

Section 7. Purpose, Role and Responsibilities of the Panel . Specific Panel duties include:

a. Gaining a working knowledge of SPU services, financial policies, costs and rates;

b. Reviewing the Plan's assumptions, technical evaluations, policy directions, and action alternatives;

c. Working closely with staff designated by the City Council and the Mayor to understand the issues and concerns of the elected representatives of the City;

d. Providing to the Mayor and City Council comments on the Strategic Business Plan concurrent with delivery of the final proposed Plan to Council;

e. Assisting the Mayor and City Council in engaging customers in discussions of the merits and implications of the Strategic Business Plan.

Section 8. Relationship to Seattle Public Utilities' Ongoing Advisory Committees . Seattle Public Utilities' Creeks, Drainage and Wastewater Advisory Committee, Solid Waste Advisory Committee, and Water System Advisory Committee will continue fulfilling their ongoing roles. The Customer Review Panel will include representation from the Advisory Committees to ensure the Advisory Committees are kept informed of the strategic planning process and have an opportunity to provide input to the planning process.

Section 9. Operating Rules . The Panel will establish its own rules for meeting attendance, quorum, leadership, and other matters necessary for its successful functioning. The expectation is the Panel may meet twice monthly throughout the development of the Strategic Business Plan. Meetings shall be open to the public, except that meetings or portions thereof may be closed if RCW Chapter 42.30 would have allowed it to be closed had the Panel been subject to that law.

Section 10. Staff Support . The Executive will provide logistical and staff support to the Panel, including a facilitator to assist the Panel with meetings, information requests, and interactions with City staff and elected officials.

Adopted by the City Council the ____ day of ____________________, 2013, and signed by me in open session in authentication of its adoption this________ day

of ______________________, 2013.

_________________________________

President ___________of the City Council

THE MAYOR CONCURRING:

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of ________________________, 2013.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Diane Clausen/mm SPU Customer Review Panel RES February 6, 2013 Version #2