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HomeMy WebLinkAbout1993-05-12; Ad Hoc - Water Commission; MinutesMINUTES MEETING OF: WATER COMMISSION DATE OF MEETING: TIME OF MEETING: PLACE OF MEETING: May 12,1993 (Regular Meetlng) 1 :OO p.m. 5950 El Camlno Real CALL TO ORDER: Vice Chairman Louis called the Meeting to order at 1:06 p.m. ROLL CALL Present: Absent: Commissioners Kubota, Louis and Maerkle Commissioner Henley. Commissioner Melideo arrived at 2:28 p.m. PLEDGE OF AUEGLNCE was led by Commissioner Kubota COMMENTS FROM THE AUDIENCE: Bob Greaney introduced Council Member Ramona Finnila NEW BUSINESS: 1. 0512-01 - Review Prooosed Water Rates as Thev Relate to the 1993-94 Budaet Bob Greaney stated that at the last Commission meeting, the budget was reviewed, and today the proposed water rate increases would be reviewed. The Commission will need to come to a consensus as to what needs to be done with those rates due to the budget restraints. Mr. Greaney stated that the proposed budget is $16,877,622, which includes water, sewer and reclaimed water operations. Water Rates were the first item discussed, with Mr. Greaney stating that the water operations budget shows a proposed expenditure of $1 1,744,566 for 1993-94, as compared to $1 1,586,223 for 1992-93. The most significant change in the budget is the Purchased Water account, due to rate increases from both the San Diego County Water Authority and the Metropolitan Water District. Also, with the wet weather and the continued water conservation by users, the amount of water sales will be approximately 14,000 acre feet instead of the 17,OOO estimated, with 14,000 acre feet being used for the estimate for the next fiscal year. Mr. Greaney stated that, in order to meet the proposed budget expenditures, revenues would have to be increased, and reviewed several possibilities. Mr. Greaney stated that one possibility is to increase the present $1.30 rate to $1.70, with 18 cents of that increase due to the Water Authority and Metropolitan increases. The remaining 22 cents increase would be due to the Operating and Maintenance budget. Transparencies were used by Mr. Greaney to show the alternatives and comparisons with an increase in the base rate to $1.70; increasing the Ready-toServe charge from $5.50 to $7.00, and increasing the Ready-tcServe charge to $1 1 .00. May 12, 1993 WATER COMMISSION Page 2 NEW BUSINESS: (Continued) Mr. Greaney explained that the rule of thumb is to generate 60 percent of the income needed to fund the Operating and Maintenance budget through the Ready-to Serve charge so that income isn’t affected as drastically when consumption of water changes. The present $5.50 Ready-teenre charge does not provide that basis. Vice Chairman Louis suggested that perhaps that should become a goal of the Water District, to be implemented over a period of years. Commissioner Kubota concurred, adding that the fwed costs of operation should be covered by the base price so the variables can’t raise havoc with the budget. Mr. Greaney continued, stating that another serious effect could be from the State, if California decides to take the property tax revenue from the Water District. The Ready-toServe charge shouM have been re-evaluated at the time the Water District became part of the City, according to Mr. Greaney. It does affect the customer who uses less water more than the large water user. Vice Chairman Louis stated that in some areas the size of the meter determines the charge, with a higher charge for a large meter that can deliver more water. Mr. Greaney said that could be considered when a rate study is performed. Mr. Greaney suggested that the Commission study the water rates and he will report further at the May 26 meeting. The Sewer Rates report was discussed next, with Mr. Greaney calling attention to the agenda bill report in the packet. He stated that the recommendation will be to establish a rate d $13.35 per month per EDU. The 2 percent increase is basically the result of the 5 percent increase in the cost of treatment by the Encina Wastewater Facility. Mr. Greaney reported 011 Reclaimed Water next, stating that the budget is increasing slowly but surely. The permanent pump station on El Camino Real is now in place, and construction of additional facilities is progressing. The reclaimed water budget will be partially funded by rebates from the San Diego County Water Authority and the Metropditan Water District, with the remaining revenue obtained through water sales. Projected water sales for 1993-94 are approximately 1,OOO acre feet, with the base rate the same as for potable water ($1.70 per unit), If there is a change in the Ready-teenre charge, that will be reflected in the charge for reclaimed water. The Commission will continue discussion of these items at the May 26,1993, meeting. ADDED ITEMS AND REPORTS: None. May 12,1993 WATER COMMISSION Page 3 WATER COMMISSION: ReDort on Presidents & Manaaers Meeting Commissioner Maerkle referred to the written report contained in the packet, stating that the California Special District Association will have its final meeting May 20, 1993. The San Diego chapter is being dissolved, due to a lack of participation. Report on ACWA Conference Commissioner Maerkle reported on the Conference held at Tahoe, stating that 1,866 delegates attended. He showed copies of the daily newsletter that was distributed each day to those attending the Conference. GENERAL MANAGER REPORTS: General Manaaers' Meetina at San Diwo Countv Water Authority Bob Greaney stated he had included The Tales of Two Cities' in the packet for the Commissioners to read. EmerQencv Storaqe Proiect Workshop with Countv Water Authorii Board Mr. Greaney reported that an alternative had been added in the recent meeting with the County Water Authority Board, and that is to add Lake Hodges and Mount Israel dam to the list of sites being studied for future water storage projects. The two dams would be operated together and considered a single alternative to other locations being reviewed in the Water Authority's quest to meet the region's water needs. Commissioner Kubota commented about a lii of sewer charges he had received, and Mr. Greaney will include copies of that list in the next packet APPROVAL OF MINUTES: On motion by Commissioner Maerkle, the Minutes d the Meeting held April 14, 1993, were approved as presented. AYES: Louis, Kubota, Maerkle and Melideo ADJOURNMENT: By proper motion, the Meeting of May 12, 1993, was adjourned at 2:s p.m. The next Commission meeting will be May 26,1993, at 1:OO p.m. Resp&ully submiied, Harriett Babbitt Minutes Clerk