Chairperson Scheer called the Workshop Session Meeting of the Water and Sewer Advisory Commission to order at 8:01 p.m. at the County Administration Building, 2nd Floor Conference Room, with the following members present: Vice-Chairperson Diehl, Secretary Armel, Commissioners Crabb, Parks, and Fishack, and Vicky L. Malott, Office Associate IV. Commissioner Renn was absent and Director Murray arrived at 8:12 a.m.
Other Attendees: Mr. Ray Horst, President of the Southwest Metropolitan Area Civic Association, Inc.
The Advisory Commission met to formalize their recommendation for FY99 Rate and Cash Projections and to consider a linear rate structure versus the "cost per account" method. The Advisory Commission presented their recommendation to the Board of County Commissioners at 9:00 a.m. this date.
(Note - Motion as amended and approved begins here.)
Motion made by Secretary Armel, seconded by Commissioner Parks, with regard to the Rate Options and Cash Projections (received-dated 3/18/98-attached), to recommend to the Board of County Commissioners, Option 1. To the extent that the recommended option proposes to generate increased revenue by 4% for water customers in FY99, with projections of 5% increases in the following fiscal years, FY2000 through FY2008, subject to subsequent review. And, that the recommended option proposes to generate increased revenue by 3% for sewer customers in FY99, with projections of 4% increases in fiscal years FY2000 through FY2008, subsequent projections also subject to review, and;
$0.3M from savings at Conococheague Industrial Pretreatment Facility in FY98 to be applied equitably to the Water & Sewer Funds, and to be projected to continue for each of the subsequent years, FY2000 to FY2008, and perhaps beyond.
$1.0M from the General Fund surplus in FY98 to be made available in FY99 budget only, with the intent to apply it as "local share" on grant funded projects to enable system expansion and resultant customer increases, and to mitigate environmental health problems and improve environmental qualities in our community.
Mr. Armel further moved that the Rate Structure goals and objectives and points of discussion and analysis have been that the:
2. Rate structure be fiscally and economically sound, and to firmly establish and reflect proper application of our fiduciary responsibility; i.e., if a rate structure methodology or other aspect is recommended to be changed, that any risk to projected revenue be minimal and reasonable, and;
3. Analysis of the 3/26/98 "Rate Structure Scenario’s", prepared and presented by Staff, generally and consistently reflects that each and every scenario, #2 through #6, results in an increase in the amount paid for water and/or sewer service to residential customers with high volume consumption, and to all multiple unit residential customers. In his opinion, these increases in FY 99 compare to significant relative savings to these high usage customers vs. minimum and average use residential customers in each FY 97 and FY 98, and;
4. Furthermore, Scenario #4 is recommended with the understanding that it’s implementation need not be strictly on an EDU basis if the "Cost of Service" model can be revisited and shown that there are aspects of the model where inputs could effect the same change, but that the key point being that whatever the minimum per EDU for 6,000 gallons is, that minimum would be assessed to each living unit.
Motion made by Commissioner Crabb, seconded by Vice-Chairperson Diehl, to amend the above motion to limit the Advisory Commissions’ recommendation to the first part of the motion first above written (bold print). Commissioners Crabb, Diehl and Fishack voted Yes, Armel and Parks voted No.
A vote was taken on the original motion, Commissioner’s Crabb, Diehl, and Fishack voted No, Armel and Parks voted Yes.
Chairperson Scheer reminded the Advisory Commission members how requests from the Advisory Commission to County Staff are handled. Commissioner Scheer asked that all requests filter through him, who in turn will coordinate with Director Murray. The Advisory Commission concurred to further discuss the linear/COS rate structure issue and its fairness at a subsequent meeting when all Advisory Commission members are present.
ADJOURNMENT
Motion made by Commissioner Crabb, seconded by Vice-Chairperson Diehl, to adjourn at 8:50 a.m. Unanimously approved.
Prepared by:
_______________________________ Date: April 21, 1998_________
Vicky L. Malott,
Office Associate IV
Reviewed by: Approved by:
_______________________________ __________________________
Gregory B. Murray, Michael V. Armel,
Director of Water & Sewer Operations Advisory Commission Secretary
Date: May 8, 1998________________ Date: May 14, 1998__________