Sewer Meeting 10/19/18 @ City Hall Noon
Attending: B. Zimmerman, G. Beach, R. Dufficy
Audience: A. McCollum, J. Hammons
1. Discussion “On going Sewer Deficit”
Mr. Zimmerman presented that currently the sewer bill is averaged on Oct, Nov, Dec. this could be affected by residence that have left for winter and that we are the only ones in the state that do not bill for actual usage.
Mr. Dufficy asked is there something wrong with this? We’ve been doing this for years is the state putting pressure on us to change this?
Mr. Zimmerman responded with there is no requirement by the state, but we are losing money within the sewer fund and if not addressed there will be a $36000 yearly deficit (Ms. McCollum presented these figures).
Ms. McCollum stated part of the cost increase was a wage increase as well as an increase in workers compensation. Also, present budget numbers income versus debits and currently it is at a negative.
Discussion was made that we need to perform a study and use last year’s water usage and simulate sewer billing on actual versus average sewer billing, Ms. McCollum stated she will get with Black Mountain and run the numbers ~ this may prevent a rate increase.
It was also discussed to look at chemical costs and calculate the average increase in these costs and potentially do yearly automatic fee increase based on this study to prevent issues in the future. Currently rates are based off 2006.
Mr. Beach inquired if we move to billing sewer rates off actual water used what is the plan for the summer sprinkling credit, Mr. Hammons replied that customers affected by the sprinkling credit will receive a prorated bill to reflect the sprinkling credit.
Mr. Dufficy stated it’s our option to remove the IP Sprinkling credit and Mr. Beach pointed out that this is required by the IP Settlement and the City cannot remove this and still be compliant with the settlement.
Mr. Hammons stated that there will be a member of the sewer department will retires soon and rather then replace we maybe able to share a crew member with another department.
Recap ~ we will look at data provided by Black Mountain actual usage and chemical cost increase over the last 3 years to provide numbers for future discussion.
2. Discussed the marketing agreement for sewer insurance.
Mr. Dufficy presented some information that he gathered at the meeting in Helena.
Mr. Hammons clarified how the insurance is based on individual plans and is not required and local contractors will be used, and this is no cost to the city. Zimmerman will draft a recommendation. Meeting Closed.