HomeMy WebLinkAbout5 Seasonal Water Discounts Agenda Item #
DONNER
Public Utility District
Workshop
To: Board of Directors
From: Peter Holzmeister
Date: July 26, 2006
Subject: Prohibition on seasonal water disconnects
Why this matter is before the Board: Duke Ackerman who lives in Tahoe Donner recently addressed
the Board under public input stating his concern with the District policy regarding seasonal shut-off of
water service. The Board agreed to agendize the matter for further review.
History: Attached is Resolution No. 2003-15 adopted by the Board of Directors on April 1, 2003, setting
forth the policy essentially prohibiting seasonal shut- off of water service. Also attached are the staff
reports that accompanied the Board discussion at the time this policy was under consideration. Finally,
attached are two letters that I wrote in response to customers asking about the policy. These documents
set forth the reasons for the policy.
Very briefly stated, the reason we have not allowed seasonal shut-off of water service is that each
customer should pay for system fixed costs. By shutting off water for several months each year
customers avoid contributing to the system fixed costs. This concept is set forth in greater detail in that
attached documents.
New information: Since the policy was implemented, we have received approximately ten to fifteen
calls each winter from customers expressing displeasure with the policy. I do not know how many
customers would have water disconnected in the winter if that option was available. Just to play out a
scenario, if 500 customers were disconnected for six months the lost revenue could be $165,000 (500
customers X $55 per month X 6 months).
Option 1: Allow seasonal disconnects. Some customers would save money. Others would need to pay
more to make up the loss of revenue.
Option 2: An option to consider is to allow seasonal disconnects and require the customer to continue to
pay the base water rate, but not the pumping zone charge. As an example, a customer in zone 7 pays a
base water charge of $48.57 per month and a pumping charge of $11.71 for a total monthly bill of
$60.28. That customer would save $11.71 per month, but would still pay the base charge of $48.57.
If the policy was changed to allow seasonal disconnects we would need to decide how to administer it.
There are three sub-options that apply to options 1 or 2.
Sub-Option A: Perform an actual physical disconnect in the field: This can be expensive and
require time from our limited crew. If there is snow on the ground and piled on the service box
by plows, we would need to use a backhoe to dig the box out to perform the disconnect and
reconnect.
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Sub-Option B: Require the electric service to be disconnected at the same time: We could rely
on the absence of electric service to demonstrate that no water is being used. Disconnecting and
reconnecting electric service is easier.
Sub-option C: Rely on a telephone or letter notice defining the dates that the customer would
be out of the home: This is the option that is likely to lead to the most problems. People are
generally honest, but forget or procrastinate.
Option 3: An option is to retain the current policy.
Recommendation: This is a workshop item. No formal action is required.
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Public Utility Distri
Ict
Resolution No. 2003- 15
ESTABLISHING A POLICY GOVERNING CUSTOMER REQUESTS
FOR DISCONNECT FROM THE DISTRICT WATER SYSTEM
WHEREAS the District provides water service to residences and businesses with its service territory;and
WHEREAS the water system provides potable water and fire protection to said residences and business;
and
WHEREAS the District finances its operation, repair and maintenance of the water system through a rate
schedule that spreads its costs throughout the year by means of monthly water billings; and
WHEREAS all customers who benefit from the water system need to pay a fair share of said costs of
operation, repair and maintenance of the water system; and
WHEREAS from time to time customers request that their residence or business be physically
disconnected from the water system, or that billing for water service be temporarily discontinued; and
WHEREAS the board of directors wishes to establish a policy defining the terms under which the District
will permit a physical disconnect from the water system; and
WHEREAS the board of directors also wishes to establish a policy stating the requirement for customers
to continue to pay for the benefit of fire protection, and to contribute to the operation, repair and
maintenance of the water system, including during periods of temporary disconnection from the water
system;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follows:
The following policy is adopted and made part of the District's Code of Policies.
5.12.030.1 The District shall permit a physical disconnection from the water system on a temporary basis
when necessary(1) to permit the customer to perform repairs, modifications or service upgrades on the
customer premises or(2)when the customer premises is not equipped with an appropriate shut-off valve
and physical disconnection is necessary to avoid frozen water pipes. A physical disconnect shall not be
permitted for any other reason.
Customers may arrange for disconnection of service by giving advance notice to the district. Charges for
service shall not be waived during the period of disconnect.
5.12.050.1 In those cases where the customer has requested discontinuance of service, the customer
must pay the disconnection/reconnection charge.
5.12.050.3 Restoration during regular working hours- Upon request,the District will attempt to make such
restoration of service during the regular working hours. A reconnection charge as set forth in the
Miscellaneous Fee Schedule will be made if the reconnection occurs during regular working hours. If
conditions require the use of a backhoe or other equipment to effect the disconnect and/or reconnect,the
customer shall be required to pay the actual charges, including labor,material,equipment and applicable
overheads in lieu of the customary fee set forth in the Miscellaneous Fee Schedule.
5.12.050.4 Restoration during other than regular working hours-upon the request of a customer to restore
service hereunder at a time other than during regular working hours, the District will attempt to make the
reconnection but shall be under no obligation to do so, unless an emergency exists. in the event the
District restores service at a time other than during regular working hours, the customer shall pay to the
District a reconnection charge as set forth in the Miscellaneous Fee Schedule. If conditions require the
use of a backhoe or other heavy equipment to effect the disconnect and/or reconnect,the customer shall
be required to pay the actual time charges, including labor, material,equipment and applicable overheads,
in lieu of the customary fee set forth in the Miscellaneous Fee Schedule.
5.12.050.5 No seasonal disconnect of water service will result in discontinuance of monthly billings.
5.12.060 Customer's Responsibility when Water Service Discontinued
In the event a customer's water service is discontinued as a result of voluntary termination or termination
for failure to pay bills, it shall be the customer's responsibility to take necessary precautions against any
and all damage to the customer's pipes,fixtures and appliances which could result from such termination.
The District shall not be liable for any such damage.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on
the first day of April, 2003 by the following roll call vote:
AYES: Directors Aguera, Hemig, Maass and Van Gundy
NOES: Director Sutton
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, District Clerk
Agenda Item #
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: March 27, 2003
Subject: Policy governing customer requests for temporary disconnect from
the District water system
1. Why this matter is before the board:
This matter recommends that the board adopt a resolution establishing a policy
regarding temporary disconnects from the District water system. Only the board can
adopt a resolution.
2. History:
You will probably recall that we discussed at a recent workshop the issue of seasonal
water disconnects. As a quick reminder, we have an increasing number of customers
who ask that water billing be temporarily suspended while they leave town for the winter.
Attached for your review is the memorandum that was under discussion at the
workshop.
After the workshop discussion, I was directed to prepare a policy for the board's
consideration that would require all customers to pay the monthly water bill even when
they may be temporarily out of town.
3. New information:
Attached for your review and consideration is a draft resolution which, if you adopt it,
establishes a policy governing physical disconnects from the water system, and
specifies that during a temporary disconnect water billings will continue. It provides that
temporary physical disconnects will be permitted only when there is a need to perform
repair, modification or upgrade to the customer premises. It provides that monthly
billings will continue during the period of temporary disconnect.
4. Recommendation:
I recommend that the board adopt the resolution establishing a policy governing
customer requests for disconnect from the District water system.
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Agenda Item #
o .
Public Utility
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: November 15, 2002
Subject: Seasonal water disconnects
Agendas, ordinances and resolutions were reviewed from 1997 through current date.
There was no workshop item or action on seasonal water disconnects.
I ask the Board to review an old policy we have establishing a procedure for customers
to voluntarily discontinue water service, and to reestablish it again. We see an
increasing trend for customers requesting a water disconnect during the winter.
Following are the policies that govern.
5.12.030.1 Customers may arrange for disconnection of service by giving not less than
five days advance notice to the district. Charges for service shall be paid by such
customer until the requested date of discontinuance r such later date as will provide not
less than the required five days advance notice.
5.12.030.2 In the event proper notice is not given, the customer will be required to pay
for such service until five days after the District has actual knowledge that the customer
has vacated the premises or otherwise discontinued water consumption.
5.12.050.1 In those cases where the customer has requested discontinuance of service,
regardless of reason, the customer must pay the reconnection charge prior to the
restoration of service
5.12.050.1 In those cases where the customer has requested discontinuance of service,
regardless of reason, the customer must pay the reconnection charge prior to the
restoration of service.
5.12.050.3 Restoration during regular working hours - Upon request, the District will
attempt to make such restoration of service during the regular working hours on the date
of receipt of the request. A reconnection charge of $15 will be made if the reconnection
occurs during regular working hours. If conditions do not permit, the reconnection will be
made on the regular working day following the date the request is made.
6.12.050.4 Restoration during other than regular working hours - upon the request of a
customer to restore service hereunder at a time other than during regular working hours,
the District will attempt to make the reconnection but shall be under no obligation to do
so, unless an emergency exists. In the event the District restores service at a time other
than during regular working hours, the customer shall pay to the District a reconnection
charge of $20.
5.12.060 Customer's Responsibility when Water Service Discontinued
In the event a customer's water service is discontinued as a result of voluntary
termination or termination for failure to pay bills, it shall be the customer's responsibility
to take necessary precautions against any and all damage to the customer's pipes,
fixtures and appliances which could result from such termination. The District shall not
be liable for any such damage.
The problems I see are as follows:
1) We are losing revenues. Most of our water rate covers fixed system costs having
nothing to do with the amount of water used. The homeowners who use their homes
during just the summer months contribute significantly to our fixed costs. They should
not be allowed to avoid their fair contribution to our costs.
2) The $15.00 reconnect charge fails to cover our costs to make the disconnect and
reconnect.
3) It is almost impossible for us to reconnect water in the winter because snow is piled
on the water boxes to a depth of over twenty feet.
I suggest we consider options.
Option 1. Keep doing what we are doing
Option 2. Adopt a policy that prohibits seasonal disconnects
Option 3. Adopt a policy that allows seasonal disconnects, but maintains a monthly
change less the pumping zone component. The disconnect and reconnect charge
should cover our actual costs.
I have not taken the time to draft actual policy language. I will wait for the Board to
consider this matter and give me some direction.
August 27, 2002
Patricia G. Galanis
7 Roma Court
Newport Coast, CA 92657
Dear Ms. Galanis,
1 have received your letter of August 21 in which you express concern over the water bill at your
home at 11576 Chamonix in Tahoe Donner. Your position is that since you are not using water
you should not be required to pay a water bill.
The costs that Truckee Donner incurs to provide water service to our customers is not related to
the use of water. A major portion of our costs relate to providing a water system to fight fires.
Our water system is oversized so that the fire department is able to have water to fight a fire in
Truckee's homes if necessary.
Our water system is also oversized to serve the needs of our customers during peak periods. We
have many part-time residents who place a demand on our system for short periods of time. Our
system is oversized to serve those brief periods of demand.
Our water crews spend all year maintaining the water system so it is available when people visit
Truckee. We cannot just maintain the wells, pumps, valves, tanks, and water lines during the
month or two that people visit Truckee. We must maintain them all year long.
These costs, the costs to provide fire protection, the costs to provide a large enough system to
serve the influx of visitors, and the cost to maintain the system throughout the year, have no
relationship to the water used by customers each month. We incur these costs even in the
months when water use is very low. The services resulting from these costs benefit everyone,
whether they use a little or a lot of water. As a result, we have to this time used a flat rate for
water billing, rather than meters.
There are certain costs that we incur that are directly related to the amount of water used each
month by our customers. The cost to pump water from the well to the home is directly related to
the amount of water used. The cost to pump water accounts for about seventeen percent of our
system costs. If we were to adopt a metered water rate we would need to charge approximately
eighty-three percent of our costs through a flat rate customer charge and approximately
seventeen percent through a meter reading. So, a person with a forty-five dollar flat rate water
bill would pay about$37.72 as a customer charge, and an additional amount based on water
used. At this time we do not have a metered water system, so all customers are expected to pay
the flat amount each month.
This is sort of a long letter in which I am trying to describe the fact that our water system costs are
primarily fixed costs, having little to do with amount of water used. Therefore, I must ask you to
pay the water portion of your bill. If you have other questions or concerns please call or write.
Very truly yours,
Peter L. Holzmeister
Dear Sally Ackerman,
I got your e-mail regarding our water rates and I will pass it on to our board of directors. I will take
this opportunity to comment on our rate. The vast majority of the expenses we incur in operating
and maintaining our water system have nothing to do with the amount of water used. Our
expenses relate to the size of our water system and its complexity.
The size of our water system is determined by the need to have water to fight a fire. This fire flow
requirement means we need to construct pipelines, pump stations and storage tanks larger than
we would otherwise build them. The size of our water system is also determined by our peak
seasonal usage. Our peak season for water use is during July and August and we build the
system to meet maximum day demand during that period. Even though portions of our water
system are unused during the winter, we need to maintain the larger system for the time when we
experience the huge influx of summer visitors. This has nothing to do with how much water any
one residence uses month by month.
The complexity of our water system has to do with the varying terrain we serve. We serve
customers as low as 5,800 feet to 7,400 feet elevation, over a forty-four square mile area. This
means we have far more pump stations and water storage tanks than a water system in a flat
area like Palm Desert. Our winter conditions require us to spend more time and money
maintaining our pump station buildings and water tanks. All of this has nothing to do with the
amount of water used.
We incur costs to maintain this large complex water system each month without regard to how
much water is being used. The question comes down to this: what is a fair way to spread the
costs of the water system over those homes and businesses that use the system? We believe
that basing the allocation on the amount of water used is not a fair method. At some point there
may be a rational for measuring water used and billing for some portion of our costs based on a
meter read. There is some portion of our costs that directly relates to water usage, such as the
cost of electricity to pump water and certain water treatment costs. However, these are a small
part of our total costs, so if we implement a meter system we would need a fairly large monthly
customer charge and a fairly low charge for water used. And for that system to be fair the
customer charge would need to be paid each month, whether water is used or not.
These are the matters we wrestle with when we think about water rates. It is not an easy matter
to sort out, but we are working on it. Your e-mail will be part of the record that we review as we
ponder these things. Thanks for the input.
Very truly yours,
Peter Holzmeister
General Manager
From: Sally Ackerman [mailto sallydukea@telis.org] _ H
Sent: Sunday, April 17, 2005 8:18 PM
To: Peter Holzmeister
Subject: water standby rates
we are very diisaypointect-ancffrustrated to be paying over sD-o/mo.
for water when rove aren't even there. as a seasonal recreation
deve(opment, we purchased a retirement cabin in Tahoe Donner.
now your "standby rates" when no water is being used-costs us over
$300/1year in addition to water use during the time we are there
which is more than three times as much as Pahn Desert.y(ease
pass on to the Board our input. it seems unreasonabCe especiaCCy
with the abundance of water there.
Page 1 of 1
Barbara Cahill
From: Duke&Sally Ackerman [sallydukea@telis.org]
Sent: Monday, July 31, 2006 10:49 AM
To: Barbara Cahill
Subject: fair water use rates
Barbara:thank for phone reminders and follow up please relay to the board our input info. that
we already pay 6 times as much per cubic ft. of residential water here vs. palm desert. in
addition, we pay now$55/mo. for "standby"for six months of no water use in the winter this is
all before the current increases we request. either a disconnect and reconnect(like cable t v.
or other service when not used)or minimal standby charge(like$10) when not used like a//
services pay should be fairly allocated on a use basis which also encourages conservation, the
current charges are not proportional and therefore perhaps not legal. thanx.
To: Truckee Donner PUD Board of Directors
Date: July 13, 2006
Re: Water rates
Mr. Paddock feels that the currently charged water rate is inconsistent with water
conservation practice and is not fair. He thinks a solution would be for the
TDPUD to consider water meters, which would be more consistent with water
conservation. He thinks there is existing legislation to install water meters. Mr.
Paddock would really like to see some thought given to water meters.
Brain Paddock
13751 Edelweiss
Tahoe Donner
Cell 530-908-9448
bgpaddock@peoplepc.com
Robert A. and Barbara S. Morrey
3404 Merrimac Drive
San Jose, California 95117-3624
408-379-5944
June 14,2006
Second home:
12860 Boca Street
Truckee, California
Board of Directors
Truckee Donner Public- Utility District
P.O. Box 309
Truckee, California 96160-0309
Honorable members of the Board of Directors:
My wife and I have owned our second home in the Biltz Tract since the early 1970's. We
are extremely concerned about the high cost of water in your district and we understand
that you are planning another raise in rates of 12% over the next two years. As second
home owners we use relatively little water during our 30-40 days a year that we stay in
the house. We do not have a clothes washer, a dishwasher, or a garden and we pay the
same flat rate of$50 per month as the full-time residents. This rate is about twice the
monthly average of$26 that we pay in our primary home in San Jose where the weather
is warmer and we use water for all of the above listed items as well as other in-home
usage. In San Jose our water charge is based on the amount of water we use as measured
by our water meter. As you know the number of second homes is far greater than the full-
time occupied homes. We feel that it is very unfair that those who use very little water
subsidize those who use a lot of water within our rate classification,
We request that you have water meters installed on all properties in your district so that
each of us may pay his/her fair share of the water that he/she actually uses.
Please make the installation of water meters an item for discussion at the upcoming
meeting and let us know the outcome of this meeting.
Thank you,
t
Dr. Robert A. Morrey and Barbara-S. Morrey
Page 1 of 1
f
Barbara Cahill
From: RSOAS1@aol.com
Sent: Thursday,July 13, 2006 10:05 AM
To: Barbara Cahill
Subject: PROPOSED ORDINANCE TO ESTABLISH THE DONNER LAKE BILLING SURCHARGE
July 13, 2006
TO: TDPUD
FROM: Richard and Celia Oas
15875 Summit Court
Truckee, California
We have been homeowners at Donner Lake for many years. We are full time residents
from mid May thru September each year. We maintain another home out of the area.
Regarding the proposed surcharge prompted us to pull our bills and see they are
$46.91/month whether someone is using water at our property or not. We gladly pay that
amount and have never questioned it. However, adding a surcharge is not acceptable to us.
We already have a lien placed by you on our property and to having to pay an additional
$6.65 for as long as 15 or 20 years is absolutely out of the question!
Why don't you put meters in and charge by gallons of water used? We would gladly pay for
the meter and installation - and know that our bills would go down with the amount of
water we use in summer and the amount we don't use in the winter!
We are against the surcharge at Donner Lake.
/s/ Richard and Celia Oas
email: rsoasl@aol.com
phone: 925-838-8838