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Minutes 01/19/2011 Productivity Subcommittee Meeting minutes for the Water and Wastewater Rate & Impact Fee Review Subcommittee January 19, 2011 Members in Attendance: Brad Boaz, Vlad Ryziew and Janet Vasey. (Jim Gibson and Jim Hoppensteadt were not present.) Staff Present: Paul Mattausch, Tom Wides, Bala Sridhar, Tom Chmelik, George Yilmaz, Mike Sheffield and Barbetta Hutchinson, County Manager's Office. Also in attendance: Brian Mantz and Robert Ori from PRMG. Vlad Ryziew nominated Janet Vasey to chair the subcommittee, Brad seconded. Janet Vasey called the meeting to order at 10:30 a.m. Janet said that all the questions from the group were sent to Tom Wides and his answers were reviewed. Tom Wides said that all five studies go to the BCC at the next meeting. User Fee — Janet reviewed her questions and answers from Tom. Some topics were shifting more cost burden to larger users, using a base year of April through April, CPI rates and fund balances. George Yilmaz described the situation of the original design parameters versus what is the current state of affairs. He explained that capacity has to be at the point to manage the "peak" day. The impact fee shortfall was discussed and determined that the slack has to be taken up by user fees. Tom said that studies are done every 2 to 21/2 years to stay on top of the numbers. Janet said that she would support the User Fee Study as all her questions were answered to her satisfaction. Impact Fees —The methodology for the calculation is standard, using the original cost and the local cost. This same format has been used since 2001 and was reviewed for legal sufficiency in 2006 and found to be solid. Janet asked Tom to take another look at the numbers using the new census information and see how it fits into the trend. Vlad raised a question regarding relocation fees. Tom responded by saying that Transportation impact fees have been paying for relocates since 2001. Since 2010, the policy has changed and utilities now pays for the relocates. In order to grow the system the water lines do need to be relocated. The lines should not be under the roads because they could break and it costs more to fix if the road has to be dug up, the pipes are at risk during construction and over time, the weight and vibration causes the pipes to shift and fail. Vlad said that utilities has done a very good job with the studies, noting that a lot of collaborative effort has had to be done. Janet agreed and said that she is pleased by the quality product that has come out of Public Utilities. She said they have kicked the tires and have found a solid report. Recommendation: Vlad made the motion to accept the impact fee and user fee studies with future level of service to be taken into consideration. Janet agreed and will give a report to the full committee. The meeting adjourned at 12:20 The meeting was adjourned at 12:20 p.m. Respectfully submitted by Barbetta Hutchinson