CHARLOTTE WATER
ADVISORY COMMITTEE
MINUTES OF MEETING
December 18, 2014
Charlotte Water Advisory Committee met Thursday, December 18, 2014, 2:30 pm at 4222
Westmont Drive, Charlotte, North Carolina.
Members Present:
Staff Present:
Guest:
Jim Duke, Jim Merrifield, Ron Charbonneau, Pride Patton, Frank
McMahan, Leslie Jones
Barry Gullet
Director
Kim Eagle
Deputy Director
Barry Shearin
Deputy Director
Regina Cousar
Continuous Improvement Officer
Chad Howell
Business Manager
Jennifer Frost
Assistant to the Director
Steve Miller
Customer Service Division Manager
Peter McChesney, Noss Eshaghi, Nepherterra Estrada
Safety Minute
Holiday Safety- Answering the door during Holidays
Minutes
A motion was made by Jim Merrifield, and seconded by Leslie Jones, to approve the November
2014 minutes. Motion was approved.
Rate Options Discussion
Presentation to Council that was held on December 1st is scheduled to go back to Council
January 26th to discuss rate options. The presentation will be stemming from last season’s
budget discussion. Council would like to hear more about fixed versus variable rates. Charlotte
Water uses four different tier categories to bill customers currently: Tier 1 (1-4ccf), Tier 2 (58ccf’s), Tier 3 (9-16ccf’s) Tier 4 (over 16ccf’s). The basis for establishing the fixed and variable
rates are based on a rate setting methodology approved by Charlotte City Council in 2011.
Factors to consider when determining rates are weather and economic driver variability.
Projections are based on a normal range however; it is hard to define normal. Another significant
source of revenue is capacity fees. Capacity fees are one-time fees assessed when customers
establish a new water or sewer connection. Capacity fees are based on depreciated cost of the
existing water and sewer treatment, distribution, and collection system. Charlotte Water staff
had a brainstorming session with a rate consultant about a week ago to obtain more information
about rate methodology options.
Coal Ash Update
Charlotte Water will continue to work with Mecklenburg County on an enhanced water sampling
plan for Mountain Island Lake and Lake Norman for the time period work is taking place to
repair and to close coal ash basins at Riverbend and Marshall power plants. Right now, there are
no expectations of impact from these activities, but we will be monitoring to make sure.
Financial Update
Revenues are trending on track and as planned for this fiscal year. Operating expenses are also
on track.
Current Events
• Charlotte Water’s bond credit rating will be reviewed by Moody’s Rating Agency in the
near future.
• Bio Solids– Several staff members are working on a memo to provide information to
Council in response to several folks who spoke in opposition to land application of
biosolids at a December Council meeting.
• Community Investment Program is being developed. There will be a series of meetings
occurring to review potential projects and needs and to receive input and ideas about
proposed or needed projects.
• Operating Budget development is ongoing.
• Billing Cycle Alignment is still on target.
• January 1st 2015 will be the official date for name change to Charlotte Water, although
the transition period may take about two years to avoid wastefulness and disruption of
operations.
Adjourned at 3:52.
JKF/TGN