HomeMy WebLinkAbout10 Schedule a Public Hearing for Non-Potable Water Hauler FeesAgendaItem#10TRUCKEEDONNER—PublicUtilityDistriJACTIONTo:BoardofDirectorsFrom:BrianWrightDate:April03,2019Subject:ConsiderationofSchedulingaPublicHearingforNewNon-PotableWaterHaulerFees1.WHYTHISMATTERISBEFORETHEBOARDReviewtheDistrict’snon-potablewaterhaulerfeesandconsiderationtoscheduleapublichearing.2.HISTORYSouthsideWell#1wasoriginallyconstructedinthe1960s,withtheintentionofprovidingpotablewatersupplytotheDistrict’sMain-TruckeeSystem.Suspectedtobeundertheinfluenceofsurtacewaterconditions,thewellposedmanychallengesinmaintainingthestrictqualitystandardsofpotablewater.Intheearly1990s,theDistrictremovedthewellfromthepotablewatersupplyinventory.Shortlythereafter,SouthsideWell#1wasre-appropriatedandhassincebeenutilizedforvariousnon-potableuses,suchasawaterhaulersupplyforconstructionactivity,dustabatement,andirrigationwaterforvariouslandrestorationprojectswithintheDistrict’sserviceterritory.In2016,theBoardapprovedthroughDistrictOrdinance2016-02aWaterHaulerFeesetataflatrateof$10.00perday.Thefeewasbaseduponstaffevaluationofthebestavailabledataatthetime,includingcostsassociatedwithmaintenanceandoperationofthewell,andestimatedpercustomerwaterdeliveries.InMay2017,theBoardapprovedtheprocurementofanautomatedwaterhaulerfillstationtobeinstalledattheSouthsideWell#1location.Thefillstationincludes:.“Self-service”customeroperatedinterfacewithacard-lock,passwordprotectedaccountaccesssystem;.Volumetricmeteringforcustomizedfillingoptionsandreportingcapabilities;.Pre-paiddebitcustomeraccountmanagementsystem;and.Customercontrolledoptionaloverheadfillarmorgroundlevelhoseconnection.Constructionandinstallationofthenewwaterhaulerfillstationfacilitywascompletedin2017.Staffcommissionedtheautomatedwaterhaulerfillingstationinthesummerof2018.Forthepurposesofprovidingacustomertrialperiod,opportunitytotestthepertormanceoftheequipment,andallowforthecollectionofwaterdeliverydata,staff
heldinplacethepreviouslyapproved$10.00perdayusefee.3.NEWINFORMATIONStaffhasreviewedthewaterdeliverydatageneratedduringthetrialoperationperiodofthenewSouthsideWell#1non-potablewaterhaulerfillstation.Baseduponthesummaryreportsofcustomerusecharacteristics,volumeofwaterdeliveries,andcostsassociatedwiththeconstruction,operationandmaintenanceofthefacility,staffhascalculatedaproposedvolumetricuserfeeof$10.00per1,000gal.,inadditiontoa$25.00annualaccountmanagementfee.Thecalculationoffeeswasbasedonthefollowingsummaryreport:EstimatedAnnualArageAnnualProposedAccountEstimatedTotalCostofSouthstdeWaterVolumetricFeeManagementAnnualRenueWell#1FacilityDeli’riesFee$23,00023MG$1O/1,000gal.$25.00$23,700Basedupontheproposedfees,staffprojectstheannualestimatedrevenuewillmoreaccuratelyreflectoperationalcostsofthefacilityinadditiontorecoveryoftheinitialconstructioncostsofthenewdeliverysystemoverthecourseofthenext8-10years.StaffproposesapublichearingbeheldtoconsidernewNon-potableWaterHaulerFees.Publicnoticeofthehearingrequirespublicationofanoticeinageneralcirculationnewspaperfortwosuccessiveweeks,withatleastfivedaysbetweentherespectivepublicationdatesandatleast10dayspriortothepublichearing.ThefirstnoticeisproposedtobepublishedonApril12th,andthesecondnoticeisproposedtobepublishedonApril19th.4.FISCALIMPACTAdoptionofthenewNon-potableWaterHaulerFeeswillresultinanincreaseofrevenueassociatedwiththeSouthsideWell#1Non-potablefillstation,andmoreaccuratelyreflectthecostsofoperationandmaintenanceofthefacility.5.RECOMMENDATIONScheduleapublichearingattheregularlyscheduledDistrictBoardMeetingonMay1,2019at6:00p.m.,orsoonthereafter,forthepurposeofreceivinginputontheadoptionofNon-potableWaterHaulerFees.,bzMichaelD.HolleyGeneralManagerIWaterUtilityDirector