MINUTES
STATE OF NORTH CAROLINA
CANE CREEK WATER & SEWER DISTRICT
COUNTY OF HENDERSON SEPTEMBER
8, 2009
The
Cane Creek Water & Sewer District Board met for a regular meeting at 5:30
P.M. in the Commissioner’s Meeting Room of the Henderson County Historic
Courthouse on
Those
present were: Chairman Bill Moyer,
Vice-Chairman
Also
present were: Anthony Starr, Finance Director J. Carey McLelland,
Research/Budget Analyst Amy Brantley, Engineering and Facility Services
Director Marcus Jones, Associate County Attorney Sarah Zambon and PIO Christy
DeStefano.
CALL TO ORDER
Chairman
Moyer called the meeting to order.
Commissioner McGrady made the motion for
the Board to convene as Cane Creek Water & Sewer District Board. All voted in favor and the motion carried.
MINUTES
Draft
minutes were presented for CCWSD Board review and approval of the following
meeting(s): December 1, 2008
Commissioners McGrady made the motion to
approve the minutes of December 1, 2008.
All voted in favor and the motion carried.
HENDERSON COUNTY PARTNERS FOR
ECONOMIC DEVELOPMENT REQUEST TO DELAY CAPACITY DELETION FEES
County
Engineer Marcus Jones stated in reference to the letter from Henderson County
Partners for Economic Development (HCPED) to modify the Capacity Depletion Fee
process, staff recommends the following modification. Upon receipt of an application for capacity
from HCPED, the District will approve the application without collecting the
applicable Capacity Depletion fees. This
will provide the recruitment tool of available sewer capacity for an industrial
site. Then after the successful
recruitment of an industry, the industry will make the application on behalf of
their organization with the specific fees per our current fee schedule and
ordinance. The proposed letter from
Engineering responding to HCPED was included in the agenda packet along with
the applicable section of the District’s ordinance.
County
Engineer Marcus Jones explained that a depletion fee is when an applicant comes
to the district requesting sewer service and their service will complete our
capacity to a certain level which in turn becomes a corresponding fee
(depletion fee) and is typically paid when they make the request. This is a request for modification of the
process as the Partners for Economic Development are in the recruitment process
but do not have a specific customer. This
will involve the Ferncliff Development.
The
Board is requested to approve the modification to the Fee process for Henderson
County Economic Development to delay the payment of the Capacity Depletion Fee
until specific customers are identified.
Chairman Moyer made the motion that the Board approves
the modification to the Fee process for Henderson County Economic Development
to delay the payment of the Capacity Depletion Fee until a specific customer is
identified. All voted in favor and the
motion carried.
FY 2010 PROPOSED TREATMENT RATE
ADJUSTMENT
Marcus
Jones stated with notification of the treatment charge from the Metropolitan
Sewage District (MSD), staff recommends the following rate schedule adjustments
(in bold) to the FY2010 Budget for the Cane Creek Water and Sewer District:
|
|
Currently Monthly Rates (FY08 & FY09) |
Proposed Monthly Rates (FY2010) |
|
A. Minimum Charge (up to 4, 500 gallons) |
$16.42 |
$16.42 |
|
B. Treatment Charge (from 0 gallons up) |
$4.57 per 1,000 gallons |
$4.88 per 1,000 gallons |
|
C. Overage Charge (over 4,500 gallons) |
$3.67 per 1,000 gallons |
$3.67 per 1,000 gallons |
Note:
For Total Monthly Charge add results of (B) and (C) to (A)
With
the proposed increase, the monthly sewer bill for the average homeowner will
increase by $1.39 which is about a 3% increase overall. On August 11, 2009, the CCWSD Advisory Board
voted 5-2 to limit the Treatment Charge to $4.75 per 1,000 gallons.
Engineer
Marcus Jones provided the following information via a power-point presentation:
MSD
(Metropolitan Sewer District)
The
District Board consists of twelve members.
Three from the County of Buncombe, Three from the City of Asheville, one
from Woodfin Sanitary Water & Sewer District, and one each from the Towns
of Biltmore Forest, Black Mountain, Montreat, Weaverville and Woodfin.
Ø
Only charge Out
of District Customers $0.01 more than District
Ø
CCWDS is MSD’s
largest customer
Ø
MSD & CCWSD
are dependent on each other.
MSD
Rate Increase
·
CCWSD is an
Enterprise Fund
o
No Funding from
the General Fund (currently)
·
CCWSD Rate
includes:
o
Minimum &
Overage Charge (CCWSD)
o
Treatment Charge
(MSD)
·
CCWSD Rates
should reflect the expenses they offset:
o
Treatment Rate =
MSD Treatment Expenses
o
Minimum &
Overage Charge = CCWSD Collection and Operation Expenses
·
CCWSD rates
(FY2010) are comparable to neighboring utilities:
o
CCWSD (4500
gallons): $38.28 / month
o
Hendersonville
(4500 gallons, out of town): $37.34
o
Hendersonville
(4500 gallons, Flat Rock): $41.39
o
MSD (4500
gallons, out of District): $29.63
o
CCWSD (w/MSD
increases): $39.54
·
CCWSD has not
increased rates since 1998
·
MSD Increases its
Charge for Treatment Annually (typically 1.5%, recently 3.5%)
·
Until FY09, CCWSD
Typically Matched the MSD Treatment Charge Increase so the Rate for Treatment
equaled the expense.
MSD
Treatment Fee Increases Needed
·
3.1% from FY09
·
3.75% for FY10
·
From $4.57 /
thousand gallons to $4.88
·
Increase of $0.31
/ thousand gallons or $1.31 for a typical customer.
·
Budget Impact of
3.1% Treatment Rate Increase in FY09
o
Revenue from User
Fees: $1,051,390
o
Projected Impact
of Treatment Rate Increase: $40,000
o
$40,000 is 4% of
Budgeted Revenue
·
Budget Impact of
3.75% Treatment Rate Increase in FY10 added to FY09 of 3.1%
o
Projected Impact
of Treatment Rate Increases: over $80,000
o
$80,000 is 8% of
Budgeted Revenue
o
Add $40,000 from
FY09 = $120,000
Likely
Budget Impact from Continuing to not pass on MSD Treatment rate of 3.5%:
-
FY11: $240,000
-
FY12: $500,000
-
FY13: $1,000,000
-
Not a sustainable
fee strategy
·
On August 11,
2009, the Cane Creek Advisory Board voted 5-2 to recommend only the 3.75%
increase.
·
This
recommendation does not account for the FY09 increase of 3.1% and leaves a
$40,000 annual deficit between treatment expenses and revenue.
To
assure a healthy and self-sufficient Enterprise Fund, avoid traumatic rate
increases like in 1998 and to follow the Fiscal Plan from the 2009 Basin Study,
staff recommends for FY2010 and future budgets, the CCWSD treatment charge
equal the treatment charge from MSD.
Chairman
Moyer stated the treatment charge from MSD would be automatically added to the
rate and the Board of Commissioners would not have to review it each year and
approve it.
BREAK
A
five minute break was taken in order to change video tapes.
RECONVENE
Chairman
Moyer noted the Board had several discussions about this last year for a
variety of reasons and the Cane Creek Board decided not to carry through the
treatment rate until some studies and work were done. It was never picked up so
they missed a year and the issue was whether you go back and add two years of
the MSD rate adjustment or just the proposed rate increase for FY2010. As Marcus explained, the Cane Creeks Board
recommendation is that we don’t go back and pick up FY08/FY09, but just pick up
the proposed rate increase. It would be
approximately a 7% increase on the treatment side, which the Cane Creek Board
thought would be difficult at this time.
The Board feels we need to try to get a seat on the MSD Board since we
are the biggest customer. This was
attempted 5-6 years ago and we were told we could have a seat on the planning
group but not at the table.
Chairman Moyer made the motion that the Board adjusts
the CCSWD treatment rate for the FY2010 budget to $4.75 per gallons to reflect
treatment expenses from MSD and waive the increase for FY08 and FY09. The voted passed 4-1 with Commissioner
McGrady voting nay.
Chairman Moyer made the motion that the Board of
Commissioners takes all the steps they can to work with MSD to get the rate to
whatever level we can, but they give us a rate for FY2011 that be passed on as
a policy matter to the rate payers. Al
voted in favor and the motion carried.
2009 DRAINAGE BASIN STUDY (DISTRICT
MASTER PLAN)
County
Engineer Marcus Jones stated, at the Board’s direction during the December 1,
2008 meeting, William Lapsley and Associates have completed the subject study
and a copy is attached hereto and incorporated as a part of the minutes. The Cane Creek Water and Sewer District
(CCWSD) Advisory Board and staff have been continually involved in the
development of this study. Also, during
the Advisory Board’s meeting on August 11, 2009, the Board unanimously voted to
recommend the study to the CCWSD Board.
Denny
Martin and Will Buie of Martin & McGill provided a power-point presentation
and a copy is attached hereto and incorporated as a part of the minutes.
Chairman
Moyer felt it was important to get started on the study right away because if
we go for an updated allocation, MSD could very well say “we will have to
increase the capacity and line size to Henderson County” and give us the
bill. We must have the study to see what
our alternatives are.
Chairman
Moyer specifically asked for figures of the cost of the study in order to get
authorization from the Board.
County
Manager Steve Wyatt recommended staff bring back information to the Board in
regards to proceeding with the treatment alternative study and then go from
there.
Marcus
Jones felt this could be an amendment to the existing contract and would be
able to supply the Board with information at the next meeting.
ADJOURN
Commissioner McGrady made the motion to adjourn as the Cane Creek Water
& Sewer District Board. All voted in
favor and the motion carried.
Attest:
____________________________________ ___________________________________
Teresa
L. Wilson, Clerk to the Board William L. Moyer, Chairman