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HomeMy WebLinkAbout1994-04-27; Ad Hoc - Water Commission; MinutesMINUTES MEETING OF: WATER COMMISSION DATE OF MEETING: TIME OF MEETING: 2:OO p.m. PLACE OF MEmNG: Council Chambers April 27,1994 (Regular Meeting) CALL TO ORDER: Chairman Louis called the Meeting to order at 2:OO p.m. ROLL CALL: Present: Commissioners Louis, Henley, Kubota, Maerkle and Melideo. Absent: None. PLEDGE OF ALLEGIANCE was led by Commissioner Maerkle. COMMENTS FROM THE AUDIENCE: There were no requests to address the Commission on a non-agenda item. NEW BUSINESS: 1. 0427-1 Recommendation to Board for Water Rate Increase Jeanne Flack reported that at the April 13, 1994, Commission meeting, the increase in water rates by Metropolitan was shown in the proposed budget. As a result of those increases, the Commission needs to make a recommendation to the Board of Directors with regard to increasing the water rates for the District. Metropolitan Water District of Southern California is increasing the charge per acre foot by $27, or $0.062 per unit (I unit = 748 gallons). The San Diego County Water Authority is not proposing any increase for the coming year, so the total cost per acre foot that the Carlsbad Water District will pay will rise from $455 to $482 for treated water, with the increase only from Metropolitan. The Carlsbad Municipal Water District is not increasing operational costs and the sewer fund budget does not propose any rate increase. The reclaimed water rates are tied to the potable water rates, and the FY 1994-95 budget shows a loss, which indicates the need for continued rebates from both Metropolitan and the County Water Authority. Ms. Flack used transparencies to show the three options staff is proposing to the Commission. Those three options are as follows: 1. Raise water rates only to absorb the increase from Metropolitan. This increase would bring the per unit rate from the current $1.67 to $173. The rate includes the subsidization of the conservation rate, which would go from $1.48 per unit to $1.54 for seven or less units of water. April 27, 1994 WATER COMMISSION Page 2 NEW BUSINESS: (Continued) 2. Increase stand-by charge from $7.50 per month for a 5/8' meter to $9.50 per month. This option would generate the needed revenue from a fixed source, as was discussed during the water rate discussions for fiscal year 1993-94. 3. Combine increases in the water rate and stand-by charge to generate needed revenue. To divide the increase between the stand-by charge and the water rate, the Commission could recommend a $1 .OO increase in the stand-by charge for a 5/8' meter and a three cent increase in the water rate. This would raise the monthly 5/8" fee from $7.50 to $8.50 and the water rate to $1.70, with the conservation rate changed from $1.48 to $1.51. In reply to query regarding the number of accounts using seven units of water or less, Ms. Flack stated that 5,000 people use seven units or less, with the average single family residential consumption being 15 units of water per month. Commissioner Maerkle stated that the other customers are subsidizing the 5,000 customers who use seven units of water or less. If the service charge is increased, it would make it more equal. Commissioner Melideo questioned the charges for apartment buildings, and Ms. Flack stated that if there are ten units in an apartment building, there is a 2' meter, and the cost is $8.35 per month for a stand-by charge for one unit. For the other nine units, the charge is at a lower rate, but they pay a per month stand-by charge for each of the nine units of approximately $5. Commissioner Melideo added that people were encouraged to conserve water, and now they are doing that. Those people would now be penalized for conserving water. Ms. Flack stated that there would still be a conservation rate. However, every customer will pay more for water. Chairman Louis inquired about the loss of revenue from customers changing to reclaimed water. Ms. Flack said that the General Manager has stated that a water study will be performed, and after that the District can determine the effect the reclaimed water sales have on potable water revenue. ACTION: On motion by Commissioner Maerkle, the Water Commission adopted option #3, to combine increases in the water rate and stand-by charge to generate the needed revenue. AYES: Louis, Henley, Kubota and Maerkle Melideo Commissioner Melideo stated she was not in favor of increasing the stand-by charge. Ms. Flack stated the rate increase from Metropolitan will be effective July 1 , 1994. The District cannot absorb the increase and must pass it through to customers beginning with the July 15- August 15 water bill. If water rates were not increased, there would be a shortfall of $41 8,500 in the Water Enterprise Fund. April 27, 1994 WATER COMMISSION Page 3 ADDITIONAL ITEMS AND REPORTS: ACWA Conference Reaistration Jeanne Flack stated the budget contains travel funding for one Commissioner to all of the conferences. The upcoming conference in San Diego will be attended by Commissioner Kubota from his firm and Commissioners Louis and Maerkle will attend as representatives from the Commission. Commissioner Melideo will attend the conference at Monterey as a representative of the Commission. WATER COMMISSION: Urban Water Institute Commissioner Melideo referred to the material she distributed to the Commissioners at the April 13 meeting, and stated that covered everything from the meeting. She stated that the meeting consisted of retailers and business people involved with water, with only about six Commissioners or Distributors there. She felt it was a very good meeting and she was impressed with the Metropolitan Manager. Some of the Districts (in northern California) have felt that they had their own thing going, but the drought makes them realize they must think of the water supply as a whole and not individually; particularly, with regard to southern California. Ms. Melideo said that desalination will need to be looked at strongly. Presidents & Manaaers Meeting Commissioner Maerkle reported on the recent meeting, stating that grants were discussed, and if there is more than $25,000 to $100,000 involved, there would be a special audit, but no audit below $25,000. Chairman Louis again urged the Commissioners to attend the breakfast meetings that are held on the third Tuesday of the month at 7:30 a.m., at the Stoneridge Country Club. GENERAL MANAGER REPORTS: Commission Workshop Jeanne Flack stated that Dr. Lange is present to answer any questions with regard to the planned Workshop. She stated that key personnel from the District will be attending the Workshop, and the date is May 11, 1994, at 11:OO a.m., in the District Office Board Room. Dr. Lange stated that Bob Greaney and he planned the agenda and he said that he is looking forward to the Workshop. ANNOUNCEMENTS: Jeanne Flack announced that the water billing equipment will be approved for purchase by the Board next Tuesday. Installation will take approximately 60 days. After the equipment is installed, Ms. Flack will arrange for a tour by the Commissioners. April 27, 1994 WATER COMMISSION Page 4 APPROVAL OF MINUTES: ACTION: On motion by Commissioner Henley, the Minutes of the Regular Meeting held April 13, 1994, were approved as presented. AYES: Louis, Henley, Kubota, Maerkle and Melideo ADJOURNMENT: By proper motion, the Regular Meeting of April 27, 1994, was adjourned at 3:03 p.m. Respectfully submitted, Minutes Clerk