HomeMy WebLinkAboutWater and Watewater Rate Advisory Committee Agenda Packet - October 6, 2016City of Colleyville Page 1
Water and
Wastewater Rate
Advisory Committee
Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Thursday, October 6, 2016
5:30 p.m.
Executive Conference Room
Third Floor – City Hall
1. CALL TO ORDER AND ROLL CALL
2. APPROVAL OF MINUTES
September 29, 2016
3.REGULAR AGENDA ITEMS
3a Presentation and discussion of rate design options to recover the
City’s costs and associated customer impacts
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday,
September 30, 2016 by 5:00 p.m.
Amy Shelley, TRMC
City Secretary
A quorum of the City Council or any Colleyville Board, Commission, or Committee
may be in attendance at this meeting.
Any matter on this agenda may, at the discretion of the governing body, be
opened for public comment and discussion.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise the City Secretary at least 48 hours in advance at
817.503.1130, and reasonable accommodations will be made to assist you.
City of Colleyville Page 1
City of Colleyville
Water and Wastewater
Rate Advisory
Committee
DRAFT - MINUTES
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Thursday, September 29, 2016
5:30 p.m.
Executive Conference Room
Third Floor – City Hall
Chair Susan Mathisen called the Water and Wastewater Rate Advisory Committee
meeting to order on September 29, 2016 at 5:30 p.m.
ROLL CALL: Chair Susan Mathisen, Vice Chair Gerald “Jerry” Gibson, and
Committee members Raymond Allee, Thomas Bauch, George Dodson, James
Dove, Jeff Gilstrap, Joe Moore, Jeff Pistor, Tim Raine, and Samuel van Bever were
present.
Mayor Richard Newton, City Manager Jennifer Fadden, Deputy City Manager Chris
Fuller, Strategic Services Manager Adrienne Lothery, Public Works Director Jeremy
Hutt, and City Secretary Amy Shelley were also present.
2. INTRODUCTION OF COMMITTEE/COMMITTEE CHARGE/CALENDAR OF
EVENTS
2a Introduction of Committee/Committee Charge/Calendar of Events
Chair Mathisen presented this item and briefed the committee.
Mayor Newton expressed his appreciation to the member’s for their service to this
committee.
3. REGULAR AGENDA ITEMS
3a Presentations and discussion of water and wastewater rates
Public Works Director Jeremy Hutt provided a Water/Wastewater 101 presentation
which explained the water and wastewater service from source to tap and
treatment.
Committee member Allee asked staff if Colleyville shares 1/5 of the TRA cost.
Director Hutt replied the percentage is based on our usage, making Colleyville’s
cost 22 percent of the total operating costs. Chief Financial Officer Brian Hogan
concurred.
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Committee member Raine asked staff if there are separate contracts for TRWD
and TRA. Director Hutt replied Colleyville has an agreement to be a part of the
organization of the Tarrant Regional Water Supply Project. He stated there is no
relationship with TRWD, only with the supply project.
Committee member Raine asked staff if they are all separate entities. Director
Hutt replied correct.
Committee member Bauch asked staff if that is the entity for the listing of
purchased water. Director Hutt replied correct.
Chris Ekrut, Director, Environmental Practice, NewGen Strategies and Solutions
provided a presentation and overview of rate components and rate-making basics,
as well as a review of Colleyville’s costs to provide water and wastewater service.
Committee member Moore asked Mayor Newton if the City Council has a policy.
Mayor Newton replied to recover the cost, and equity is very important.
Committee member Pistor asked staff if the customers, who are outside the City,
are residential. Chief Financial Officer Brian Hogan replied yes.
Vice Chairman Gibson asked staff if there have been any complaints since the rate
was increased from $4.30 to $4.36. Chief Financial Officer Brian Hogan replied
there have not been too many.
Committee member Bauch asked staff if the average customer will pay $1.20 a
month more. Chief Financial Officer Brian Hogan replied it will depend on usage.
Committee member Raine asked staff if the plant assess wastewater for the entire
City. Director Hutt replied yes, before the wastewater leaves our system, it is
metered.
Committee member Raine asked Mr. Ekrut what percentage of volume usage is
actually returning to the plant? Mr. Ekrut replied that percentage is difficult to
determine due to the drainage also dumping into the system. Director Hutt added
in 2015 about 1.1 billion.
Committee member Gilstrap asked staff what were the key three months for that
amount. Director Hutt replied staff would have to get back with him.
Committee member Pistor asked staff how the irrigation meter is handled. Chief
Financial Officer Brian Hogan replied each meter is billed separately, but they can
be combined them on one account.
Committee member Pistor asked staff if irrigation is charged for the wastewater.
Chief Financial Officer Brian Hogan replied no.
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Committee member Pistor asked Mr. Ekrut if the larger meters are using the
volume of their larger capacity. Mr. Ekrut replied no.
Committee member Pistor asked Mr. Ekrut if the schools and government meters
are enjoying discount. Mr. Ekrut replied government meters are not being charged
since they would be charging themselves.
Committee member Dodson asked Mr. Ekrut if the “government” just includes
Colleyville. Mr. Ekrut replied yes.
Committee member Moore asked Mr. Ekrut about the base meter. Mr. Ekrut
replied the base residential meter is 1 inch. Director Hutt added a 1 inch meter is
not a requirement, but most, because of the size of the actual house, use a 1 inch.
Committee member Gilstrap asked Mr. Ekrut about what is the system cost for a 4
inch meter versus a 1 inch meter. Mr. Ekrut replied he does not have that detail.
Director Hutt added there is a water model to account for all meter sizes, but
there are impact fees to address the up-front costs for that connection. He stated
an impact fee study is done every five years.
Committee member Bauch asked staff if the distribution network is mostly the
same. Director Hutt replied staff will look at the water model to modify the
distribution network based on development needs.
Committee member Raine asked staff if density would affect the modeling.
Director Hutt replied yes.
Committee member Raine asked staff how much undeveloped land is going to
impact this. Director Hutt replied very little.
Committee member Raine asked staff if the impact fees are just revenue. Director
Hutt replied the infrastructure is being changed depending on demands. Chief
Financial Officer Brian Hogan added we can only spend those funds on certain
items.
Committee member Raine asked Mr. Ekrut if there is some statutory requirement
to keep the impact fees, even though the improvements may never need to be
changed. Mr. Ekrut replied Chapter 395 of the Local Government Code is specific
about when and how it can be used and when it can be returned to the customer.
Committee member Pistor asked staff if the charge to upsize those lines comes
from this revenue. Director Hutt replied no. Mayor Newton replied it does not
cover those costs; therefore, it comes from the Utility Fund.
Committee member Pistor asked Mr. Ekrut what the capital cash investments are
going to. Mr. Ekrut replied infrastructure renewal and replacement. Director Hutt
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added water main replacements, with some upsizing, and replacement of or
adding infrastructure.
Committee member Raine asked Mr. Ekrut if those costs are included in the bonds
for the replacement of the roadways. Mr. Ekrut replied those are cash funded
capital. Mayor Newton added these components may be a part of the project, but
the water improvements are paid from this fund.
Committee member Bauch asked staff if there has been an analysis of risk factors
in the distribution system. Director Hutt replied staff monitors the system very
closely. He added lead and copper testing is done every three years, and staff
should have those results in soon.
Committee member Raine asked Mr. Ekrut about the rate structure and the length
of the contract in which the City is a party to. Mr. Ekrut replied it is a “forever”
contract, as long as bonds are outstanding. Chair Mathisen added the contract is
adjusted annually. Mayor Newton added Colleyville is in it as long as there is
project funding.
Committee member Bauch asked Mayor Newton if Colleyville is getting a fair and
equitable price from TRA. Mayor Newton replied Colleyville has zero control over
pricing. He added he has looked at opportunities to influence these organizations,
and at the boards that control them.
Vice Chairman Gibson asked Mr. Ekrut if the entities are highly regulated by the
state and are they making a profit off of us. Mr. Ekrut replied they are non-profit.
Chief Financial Officer Brian Hogan added we receive any differences in what we
pay for versus what it actually costs.
Committee member Allee asked staff if water usage has increased since watering
restrictions were lifted. Chief Financial Officer Brian Hogan replied water usage has
increased.
Committee member Moore asked Mr. Ekrut if there are lakes currently being built.
Mr. Ekrut replied yes, and it takes between 30 and 50 years to build a reservoir.
Committee member Allee aksed Mr. Ekrut if the $26.06 is the cost to get the water
to the house. Mr. Ekrut replied correct. Mayor Newton added that is the fixed cost,
which does not include the actual water.
Committee member Pistor asked Mr. Ekrut about the 11 percent increase in
housing. Mr. Ekrut replied we project for a .5% annual increase in meter count,
and this is a long term assumption.
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Vice Chairman Gibson asked Mr. Ekrut if the debt service portion is a part of the
$3 million in the distribution revenue requirement. Mr. Ekrut replied it is not
included.
Mayor Newton asked Mr. Ekrut about the percentage of loss. Mr. Ekrut replied it is
very minimal.
Committee member Dodson suggested tracking the City’s water usage. Committee
member Moore suggested budgeting for it as well.
Chair Mathisen suggested discontinuing the 1,500 gallons given away. Mayor
Newton added if the 1,500 is taken out, the rate would go from $26.06 to about
$20.00.
Committee member Pistor asked staff if anyone is below 1,500 on the meter. Chief
Financial Officer Brian Hogan replied very few.
Mayor Newton added the 1,500 is being transitioned out and will be gone in three
years, it is just a matter of whether or not it needs to be done now or not.
Committee member Moore asked Mr. Ekrut if the wastewater side is included in
the contracts. Mr. Ekrut replied yes.
Committee member Pistor asked Mr. Ekrut if the storm water is separate. Mr.
Ekrut replied yes.
Vice Chair Gibson asked staff if the TRA purchased water rate per gallon is a
published rate. Chief Financial Officer Brian Hogan replied it is not published, but it
is provided in their budget details. Committee member Moore stated Grapevine
pays $3.08.
Committee member Pistor asked Mr. Ekrut if there are any risks with a radical
increase in rates that we might have to go back to the public with. Mr. Ekrut
replied yes, especially with natural impacts.
Vice Chair Gibson asked Mr. Ekrut if the City has a provision for unpredictable
fluctuations. Mr. Ekrut replied no, no rainy day fund.
Committee member Bauch asked Mayor Newton if there is any back-up checking
account for emergencies. Mayor Newton replied there are fund balances every
year, and for the last several years, money is left over and moved into the next
year. City Manager Jennifer Fadden added the City currently has a 90 day
operating fund policy for reserves.
Committee member Bauch asked staff if additional payments have been made
over the past years. Chief Financial Officer Brian Hogan replied much more
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revenue was received under the tiered rate system, some was sent to the General
Fund and some was set aside for capital projects. City Manager Jennifer Fadden
added staff will provide the historical data.
Committee member Gilstrap asked Mr. Ekrut if there is a way to capture the
excess revenues for a future fund. Mr. Ekrut replied there is already a utility
reserve.
Committee member Gilstrap asked Mr. Ekrut if a utility would do a rebate to the
consumers, in the event a refund is received. Mr. Ekrut replied he has never seen
a utility provide a credit back to the customers, unless they are ordered to do so
by the state.
Chair Mathisen asked staff if they are currently using fund balance as rate
stabilization. Chief Financial Officer Brian Hogan replied yes.
Committee member Moore asked staff if they do not ever get below the 90 days.
Chief Financial Officer Brian Hogan replied correct.
Vice Chair Gibson asked Mr. Ekrut if the rate stabilization seems more geared
toward the citizen’s side, which may imply rates are not going to change in the
future. He suggested naming the fund something else. Mr. Ekrut agreed.
Committee member Moore asked staff if the utility fund contributes to the general
fund to pay for administrative costs. Chief Financial Officer Brian Hogan replied not
any longer.
Mayor Newton asked staff if we are covering all the costs in the Utility Fund. Chief
Financial Officer Brian Hogan replied no.
Mayor Newton asked staff what are those costs that are not being covered. Chief
Financial Officer Brian Hogan replied it has been researched but the exact dollar
amount cannot be determined; however, a flat percentage could be determined.
Mayor Newton stated those costs need to be identified, anything that is tangible.
City Manager Jennifer Fadden explained anything that has a direct connection to
the Utility Fund operations are split and funded through the General Fund, Utility
Fund, and Drainage Fund. She stated the indirect costs have not been analyzed.
Mayor Newton suggested taking the percentages of those FTE’s who contribute to
the Utility Fund.
Committee member Pistor asked Mr. Ekrut if any of the other cities that make up
the TRA have an opportunity to go somewhere else for water. Mr. Ekrut replied
Grapevine has a number of other sources.
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Committee member Pistor asked Mr. Ekrut if any of the other cities opt out of the
contract, would our costs go up. Mr. Ekrut replied he did not believe anyone would
opt out. Mayor Newton added some cities have done things to decrease their
percentage.
Committee member Moore stated he would like conservation measures to be
considered.
Committee member Gilstrap asked staff about the three percent loss, which is
about 18 gallons per house, per day. Director Hutt replied loss is increased with
water main breaks, and every service may have water leaks, such as in the pipes.
He added the meters have a four percent factor of accuracy, and all is tracked on
an annual basis. He stated three percent is incredibly low compared to our peer
cities.
Committee member Gilstrap asked staff about meter cycle and accuracy. Director
Hutt replied all meters are on a 12 month cycle and we have processes in place for
checking accuracy.
Chair Mathisen asked staff about the monitoring of such. Chief Financial Officer
Brian Hogan replied the utility billing supervisor monitors every bill.
Committee member Gilstrap asked staff about waste water leaks and if there is a
four percent discount on that. Director Hutt replied it does not leak, it collects.
Committee member Gilstrap asked Mr. Ekrut what other cities are doing about
giant offenders. Mr. Ekrut replied there are options for seasonal structures or
rebates for water conservation. He said the metroplex has done a great job about
conservation measures and resources.
Committee member Gilstrap asked Chair Mathisen about demographic information
for residents. Chair Mathisen replied the utility billing software does not maintain
demographic information. City Manager Jennifer Fadden added demographic
information from the last census can be provided. Chair Mathisen suggested the
committee should consider the life line rate for those who may be in a financial
hardship, or that can use the assistance. Mr. Ekrut added the committee should be
very careful about the implementation of the rate structure.
Committee member Moore asked Mr. Ekrut if there are reports to show those who
only pay the base rate. Mr. Ekrut replied he can produce a histogram, maybe the
total number by gallons.
Committee member Pistor asked Mayor Newton how many residents, in the more
rural areas, are not on the sewer system, and has there been any pushback from
them. Mayor Newton replied those who are not on the sewer system do not pay
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wastewater. Chief Financial Officer Brian Hogan replied he would have to confirm
that with utility billing.
Committee member Allee asked staff if the meters are remotely read. Director
Hutt replied each meter is read manually. He added they are evaluating the smart
meters, and some neighboring cities are using them.
Committee member Allee asked staff if there is any good or promising service.
Director Hutt replied there is an initial up front cost, but because we only have two
meter readers, the return on investment would not benefit us.
4. ADJOURNMENT
The Water and Wastewater Rate Advisory Committee meeting adjourned at 8:27
p.m.
APPROVED BY A VOTE OF AYES, NAYS, AND ABSTENTIONS ON THIS THE 6TH
DAY OF OCTOBER 2016.
Minutes taken and prepared by:
Amy Shelley, TRMC
City Secretary