Minutes

Utility Board Minutes 6 23 2009

Written by Allison Leavitt. Posted in Minutes.

                                                            MINUTES      

MONROE CITY UTILITY BOARD

June 23rd, 2009

 

 

 

 

6:00 p.m.

 

1.         Chairman Buddy Qualls conducting

The regular meeting of the Monroe City Utility Board was called to order at 6:00 p.m. by Chairman Buddy Qualls.  Prayer was offered by Chairman Buddy Qualls.                                   

   Present:

                        Chairman Buddy Qualls

                        Board members Johnny Parsons, Perry Payne, R.K. Nielson, Jeff Nielson

                        City Treasurer Allison Leavitt

                        South Monroe Culinary Water President Mathew Mills

Approval of minutes of previous meeting 

A motion was made by Board Member R.K. Nielson and seconded by Board Member Johnny Parsons, to approve the minutes of May 12th, 2009 Utility Board Meeting with change to 35 years of service on the Search and Rescue not 3.

All were in favor. Motion carried.                

 

2.         Business items

            (A) South Monroe Culinary Water Works Rates

            Chairman Qualls attended the city council meeting that followed are last board meeting.  He went so that he could inform the council of the direction the board wanted to take in regards to the rates for South Monroe Culinary Water System, and to inform new Council Member Larmar Ogden what the board has been working on.

            Buddy reported that Mayor Nilsson stated that he felt the board has done a tremendous job and has been able to stay good neighbors with those involved in changes.  

            It was explained that the goal with South Monroe Water was to cover the cities costs.  According to the city’s expense record, the cost to Monroe City is about 19 cents per thousand, and this is what we would like to charge.  At this increase the cost to South Monroe could possible be about $600 to $800 dollars per year.  And this is what the board would like to approach South Monroe with.  The board is unaware right now of what kind of hardship this might place on the water company; therefore we may not be able to make this large of an increase at this time. 

              Buddy expressed that he was not happy with the newspaper article following the council meeting and apologized to Mathew Mills, South Monroe Culinary.  The news article was written from a discussion during council meeting not on a decision made at council meeting.  This is very hard to conduct business when the negotiations are basically taking place in the newspaper.  Buddy plans on talking to Sandy Phillips, Richfield Reaper, about the reporting.   Mathew accepted the apology and understands what the circumstances were.

            Discussion was turned over to Mathew Mills to explain his feelings on the rate increase.  As Mat examined the city’s break down on the cost to treat the water that comes from the cold spring’s spring and is then delivered to them, he felt that it was not accurate.   

            Mat figured that if the plant was running an average running of 480 gpm that is 252, 288 million gallons a year.  South Monroe used 13,199 million.  The percent of South Monroe usage is about 5.3%.  If you take 5.3% of the cost to treat the water and then divide it into the amount of water South Monroe used it would make their cost be about be about 10 cents per thousand, they are now paying 15 cents per thousand, and the city wants to up it to 19 cents per thousand.

            The city figures are on actual water that has gone through the treatment plant; however there was some discussion on how this figure was obtained.  The figures that the city used were obtained from the usage figures that the meter billings produce, which is much less than what Mat is saying the plant produces. 

            The city has computed their rate by dividing the cost of materials to treat the water into the usage, and Mat has computed is rate by the percentage of their water used.  No one wants to be unfair to the other one; we need to come to a consensus of how to compute the cost.

            R.K. Nielson, board member, suggested that the item be tabled so that the city could reevaluate their figures and examine Mats.  There was some confusion on the difference of the figures and more research was needed, the usage and costs will be looked at again

            Allison will talk to Rodney Wanlass, Water Superintendent, and Devin Magleby, Public Works Director, to verify the amount of water being treated and revise filtration cost sheet if needed and see if this can be explained

 

A motion was made by Board Member R.K. Nielson and seconded by Board Member Johnny Parsons to table this decision until the board members have an opportunity to look at this in depth, and have time to compare Monroe City’s chart and South Monroe Culinary chart.  All were in favor.  Motion Carried.    

 

            A work session is schedule for July 14th @ 6:00p.m. to discuss the difference in rates.  

 

3.                  Adjournment

A motion was made by Board Member Johnny Parsons and seconded by Board Member Perry Payne to adjourn the meeting.  All were in favor.  Motion Carried.

Utility Board Minutes 5/12/2009

Written by Allison Leavitt. Posted in Minutes.

MINUTES

MONROE CITY UTILITY BOARD

May 12, 2009

6:00 p.m.

 

1.         Chairman Buddy Qualls conducting

The regular meeting of the Monroe City Utility Board was called to order at 6:00 p.m. by Chairman Buddy Qualls.  Prayer was offered by Board Member Jeff Nielson

            Present:

                        Chairman: Buddy Qualls

                        Board members:  Johnny Parsons, R.K. Nielson, Perry Payne, Jeff Nielson

                        City Treasurer: Allison Leavitt

Approval of minutes of previous meeting:  Perry and Johnny

A motion was made by Board Member Perry Payne and seconded by Board Member Johnny Parsons to approve the minutes of the February 24th , 2009  Utility Board Meeting with changes made to last paragraph on page 2.

2.         Business items

            (A) Welcome new board member Jeff Nielson. Chair Buddy Qualls asked new Board Member Jeff Nielson to introduce himself to the board.

            Jeff  told the board that he has basically lived his life in Monroe.  He grew up in the two story house located at 48 S Main.  He attended school in Cedar City where he received training in electronics.  He has worked for Sevier County for 29 years with their  two way radio systems and now 911 services.  He is currently on the Monroe Volunteer Fire Department in which he has served for 27 years.  During these 27 years he has been the Fire Chief at least two times.  Jeff has also been a member of the Search and Rescue for 35 years.  He noted that he has been involved in a lot of community organizations, but has never served in this type of a capacity. 

            Buddy explained that as a board our main goal has been to be fair between the city and residents.  The board just recently along with the City Council approval, approved an ordinance in which water users outside the city limits would pay an additional $20 surcharge, in which these monies will be used to replace old and deteriorating water lines outside the city limits.

            We are currently working on the South Monroe Culinary Water usage rates.  

            Buddy acknowledges that the board has had members with a lot of experience and it will be nice to have Jeff on our board. 

            (B) Review water rates for South Monroe Culinary Water Works.

In November of 2007 the Utility Board, with the councils’ approval, met with South Monroe Culinary Water Works to renew current contract.  During the discussion it was determined that the cost to deliver the water to South Monroe Culinary Water to the city is approximately twenty cents per thousand, and they were being charged five cents per thousand.  The Utility Board and the South Monroe Culinary Water agreed on a rate of fifteen cents, with the understanding that it would be reevaluated in a year or so, so that the rate could be increased to meet the city’s actual cost. It was felt by both sides that this would help the city recoup its cost and not over burden South Monroe Water.        

            Board member Perry Payne explained to Board member Jeff Nielson that South Monroe is a company that Monroe City sells water wholesale to and that this is why their rate is different than city residents.  They have their own certified water operator and maintain their lines.

            Expense data was collected from 9/07- 8/08 to determine actual costs of water delivery.  This year’s average is about nineteen cents per thousand.  If we were to increase the rate to nineteen cents per thousand it would increase there bill about $600 per year.  Board Member Parsons felt like this would not be unreasonable.  We would be willing to implement this at the beginning of their billing cycle and after summer water season.

            It was discussed to implement the new rate beginning 10/09, and then automatically adjust the rate each year as expenses changed. If this works out we could go the five years, as stated in the original contract, before meeting again.

            Allison will notify Mathew Mills, President that the board would like to meet with him and board members to discuss rates.

           

3.         Adjournment

A motion was made by Board Member R.K. Nielson and seconded by Board Member Johnny Parsons to adjourn.  All were in favor. Motion carried.

 

 

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