Utility Board

Utility Board Minutes 5/12/2009



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


                        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.