CITIZENS’ ADVISORY COMMITTEE
Meeting Minutes
May 20, 2004  

CAC members in attendance:  Russell Burton (Chair), Michael Buchenau, Tim Flynn, Jim Legas, Myrna Poticha, Roberta Simonton  

DW staff:  Marie Bassett, Kerry Kuykendoll, Greg Fisher, Stacey Hinds , Joe Sloan  

Guests:  Douglas Christ, Rocky Mountain Car Wash Association, Peter Zlatev, Public,  Brenda O’Brien, GreenCO, Jim Houston, Amy Livingston , Customer, Bob Lorenz and Ralph Fischer, Inspiration Point Neighborhood Association.

Agenda and minutes  

The agenda was approved after the following changes were made:  Move CAC Business to the beginning of the agenda and add the topic Surcharge Maps, Greg Fisher, Rates.  

The minutes were approved with the following change: Page 1 first paragraph of minutes, fifth line:  change would be need to would be needed.  Page 2, Master Meter Growth, correct the word Master (Mater) in the paragraph.  Russell requested that all future minutes be done in the new format which lists action items and designates which CAC member(s) would be attending Board meetings.

Staff Update -- Marie Bassett, Director of Public Affairs  

On May 1, 2004 there was a sharp increase in water usage.  It appears that customers followed the Spring Watch program and did not begin to water until May 1, 2004 .   

The Board approved a Cement Mortar Relining project this year.  This is a pipe rehabilitation project that cleans and lines existing water mains.  During the past two years, the project was not done because it requires large amounts of water to flush the pipes as part of the cleaning process.  DW has to keep up with maintenance each year or face significantly larger projects in the future.  

The Board has cut the vehicle budget, and a hiring freeze is in place.  Positions are filled only after the request has been approved by the Manager.  

The CIS program has been delayed as a new vendor needs to be selected.  Originally the date for implementation of the program was 2005.  It will now be implemented in 2006.  

The South Platte Protection Plan is near approval.  Over the past six years Denver Water has been working with other water utilities, environmental groups, federal agencies and various other stakeholders on a plan to manage the South Platte by local authorities in lieu of federal designation of the South Platte as a Wild and Scenic River .  The South Platte Protection Plan is an alternative to Wild and Scenic and is a significant accomplishment by all those involved.  Tim Flynn and Jim Legas asked if the plan would allow for future storage sites on the South Platte .  Marie stated a twenty year holding period on new storage projects at or below Cheesman Canyon (this will not impact Antero or Eleven-Mile Reservoir plans).  

The Board acted on the three motions sent by the CAC at their meeting of April 21, 2004 .   

Motion to allow Seed & Sod.  The Board approved extra watering time for Seed & Sod.  

Motion to review the surcharge for Master Meter distributors. The Board has instructed staff to review Master Meter districts.  Staff reviewed usage and growth in Master Meter districts and changes were made as a result of the review.    

Motion to establish a trigger point to lift the surcharge.  The Board will end the rate surcharges, the SDC surcharges and restrictions at the same time, but has not yet designated that time period.  

At future Board meetings, all public comment will be heard at the beginning of the meeting.  This includes comments from the CAC and the Distributors.   

Four commercials that make up the TV drought/conservation ad campaign, Water Is Scarce – Ways to Save Aren’t, were shown to the CAC.   

CAC Business -- Russell Burton, Chair, CAC  

Jim Legas raised questions about the letters and articles included in the CAC packet.  There were errors in some of the articles and a letter to the CAC was incorrect.  Jim wanted to know who responded to the obvious errors and who determines what is sent to the CAC.  The CAC packets are sent by Joe Sloan; and correspondence addressed to the CAC is sent to CAC members without review.   DW has a full time person working with the media.  Joe suggested that Trina McGuire-Collier, Manager of Media Relations, speak at a future CAC meeting.  

In response to an e-mail sent to members of the CAC, Russell Burton asked members of the public, who were attending the meeting, if they felt comfortable speaking during the meeting.  All responded they felt their comments were welcome during the meeting. The time for Public Comment is at the beginning of the meeting.  However, the CAC members would welcome comments from the public during any portion of the meeting.  

Action:           Joe will draft a protocol of what is to be sent to CAC members.  The draft will also include meeting guidelines which can be made available to members of the public who attend CAC meetings.  

2003 Surcharge Map -- Greg Fisher, Rate Analyst  

Three maps and one graph were distributed to demonstrate which parts of the service area paid higher surcharges in 2003.  60% of residential customers paid no surcharge in 2003.  20% paid up to $8.76, 10% paid up to $23.00 and roughly 9% paid more that $23.00.  Greg will create a similar map for 2004.  Tim Flynn had requested a copy of the map at the April meeting.  It appears the majority of customers in the southern part of the service area received a surcharge.  Greg responded that customers in that area saved water even though a surcharge was assessed.  This could mean that the area has large residences/lots which are more likely to use over 19,000 gallons per billing cycle.  

Proposed Structural Adjustment to the Service Charge -- Kerry Kuykendoll, Manager of Rate Administration  

Russell Burton welcomed those present at the meeting and encouraged them to ask questions and/or comment on the proposed increase to the service charge.  

Kerry distributed information on the proposed changes to the service charge.  The service charge was based on meter size until 1995.  At that time, the Board changed the service charge to only include customer service costs.  Those costs include billing, postage, customer service section costs (meter reading & general customer services).  Last year Denver Water issued its first Revenue Bond.  In the past DW had issued G.O. bonds which were backed by the state.  In order to get lower interest rates on bonds, DW switched to Revenue Bonds.  As indicated, these bonds are guaranteed by DW revenue.  If the revenue is lower than projected, future bonds could have higher interest.  The Board is currently considering a change to the service charge which will include costs to cover some debt service.   

Comments on the Proposed Adjustment to the Service Charge     

Myrna Poticha stated that if the increase is necessary she would be in favor of the proposed changes. However, she would like to see higher rate blocks for those who use the most water instead of increase costs for all customers -- make those who use the most, pay the most.  

Bob Lorenz and Ralph Fischer, Inspiration Point Neighborhood Association, stated their neighborhood had residents who were on fixed income who could not afford increases.  If an increase is necessary, it should affect those who use the most water.  City properties, social service agencies and Housing Authority properties should not be assessed increases. 

Amy Livingston raised questions of how the public was informed about the proposed increases, and if approved, how customers would be notified about the increase.  Denver Water will continue to raise rates in the future and DW should do more outreach to the customers to inform them of increases.   

Action: At the next meeting Joe will have information on how Denver Water will give notice to customers.

All present agreed that Option 2 would be the best and most equitable for the majority of customers.  A motion was approved unanimously.  

Motion:

The CAC recommends that the Board approve the Option 2 Service Charge

( meter size service charge).     

CAC Business  

Proposed Rebate Program  

The proposed Rebate Program will be decided on at the next Board meeting.  Roberta Simonton suggested the CAC endorse the proposed program.  Myrna Poticha had distributed a copy of a letter sent to the Board by Western Resource Advocates (WRA).  She requested that members of the CAC review the letter particularly on the section covering rebates.  Myrna would like comments on the letter sent to Roberta or Joe by Tuesday May 25, 2004 .  Roberta will convey those comments to the Board on May 26, 2004 .  Myrna would like the CAC to review the letter further at the next meeting when Rates are discussed.    

A motion was introduced and approved unanimously.  

Motion:

The CAC endorses the Rebate Program as presented to the Board on May 12, 2004.  Changes have been made since that date.  The CAC urges that dual flush toilets remain part of the rebate program.    

Future CAC involvement at Board Meetings  

Roberta Simonton will attend the Board meeting on May 26, 2004 .   

Jim Legas will attend the Board meeting on June 9, 2004 .

Future CAC Agenda Items  

Denver Water’s Media Relations - Trina McGuire-Collier, Manager of Media Relations  

Direction of Denver Water – Chips Barry, Manager of Denver Water  

Update on Customer Service – Patti Miller, Customer Service Office Manager   

Future Storage Projects – Planning Division  

Visit to Denver Water Facility  

The meeting was adjourned at 8:00 pm .