CHARLOTTE WATER
ADVISORY COMMITTEE
MINUTES OF MEETING
July 16, 2015
Charlotte Water Advisory Committee met Thursday, July 16, 2015, 2:30 pm at 4222 Westmont
Drive, Charlotte, North Carolina.
Members Present:
Jim Duke, Ralph Messera, Leslie Jones, Frank McMahan, Ron
Charbonneau
Members Absent:
Pride Patton
Staff Present:
Barry Gullet
Jennifer Frost
Barry Shearin
Carl Wilson
Karen Weatherly
Utilities Director
Assistant to Director
Deputy Director
Chief Engineer
City Attorney
Safety Minute
Eye Protection
Election of Chair
A motion was made by Ron Charbonneau, and seconded by Ralph Messera, to re-elect Jim Duke
as Chair of the Advisory Committee. Motion was approved.
Election of Vice Chair
A motion was made by Jim Duke, and seconded by Leslie Jones, to re-elect Ron Charbonneau as
Vice Chair of the Advisory Committee. Motion was approved.
Minutes
A motion was made by Leslie Jones, and seconded by Frank McMahan, to approve the June
2015 minutes. Motion was approved.
Drought Management
Consistent with the Low Inflow Protocol (LIP), the Drought Management Advisory Group
(DMAG) is advising that the conditions of the drought are currently at Stage Zero and
progressively deteriorating. Stage Zero (0) alerts water suppliers, industrial water users, Duke
Energy and other interested parties to monitor conditions and prepare for a drought situation.
The Low Inflow Protocol prescribes management standards such as conservation priorities
during drought conditions, strategies to ensure coordinated response, and outlines criteria for
entering and exiting Drought Stages. The DMAG and LIP recognize the strong nexus between
water conservation and energy conservation.
There are 11 reservoirs on the Catawba River. Duke Energy calculates the storage index at the
beginning of each month based on the amount of useable storage actually available in the
reservoirs compared to the targeted amount. At Stage 1 drought conditions, Duke Energy will
make significant changes to their operation and reduce the amount of water that is released from
the dams. The Low Inflow Protocol calls for every water supply utility to ask their customers to
reduce their consumption by 3-5 percent while Stage 1 conditions persist.
Charlotte Water is working with other City and County departments to help them reduce internal
water usage. Charlotte Water is also partnering with the local Fire Department, water industries,
and local hotel organizations to increase awareness in how we can all further educate the
community on ways to reduce water usage during this time.
Refinancing
Charlotte Water and Charlotte Finance Department are preparing for issuance of $459.6M in
water and sewer system revenue bonds. The proceeds will be used for refunding and the
prepayment of existing debt, and termination of existing interest rate swap agreements. Charlotte
Water is also preparing for issuance of $180M in short term construction period financing. The
construction period financing will provide cash flow for Charlotte Water capital projects, some
of which are underway and some which are planned to start during the next two years.
BCA Wrap-Up (Billing Cycle Alignment)
The billing cycle alignment project has been completed very successfully. As a result, Charlotte
Water customers will experience more consistent billing periods and the meter reading and
customer service operations will be much more efficient.
Budget Update
Although the books haven’t been closed for the year, preliminary indications are that Charlotte
Water ended fiscal year 2015 in a very good financial position. It appears revenue exceeded
budgeted amounts and expenses were well within the budget.
Meeting Adjourned 3:55
TGN