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HomeMy WebLinkAboutCAPITAL IMPROVEMENTS - 05/04/2004 - Capital Improvements Committee May 4, 2004 Chernick Conference Room 9 am Present: Trustee Petri, Chair R E c E 1 V E C Trustee Feichter,Member Trustee Czamik, Member JUN 18 2004 VILLAGE Staff: Village Manager C(ERK'S OFFICE Assistant Village Manager Director of Finance Director of Public Works Water Meter Issues The members of the CIC referred to a report: issued by the Assistant Village Manager dated March 19, 2004. Staff reported that there are several issues requiring policy discussion. Those issues include: 1. under reporting of actual water usage and payment required by customer of an under reporting remote reader; 2. replacing water meters; and 3. a comprehensive rate analysis. Under Reporting and Rate Charged for tinder Reported Water Usage The Village last changed its water meters some 20 to 24 years ago. During that time, the Village installed a new water meter for each customer along with a remote reading device. The remote reading device was installed on the outside of the home. This remote allows the Village staff to read the meter without actually going into the home. After two decades of use, some remote reading devices skip or under report the actual inside meter reading. This may occur for a variety of reasons such as insects entering the remote, condensation, corrosion, freezing weather, wires have come loose over the years, and similar situations. When the remote skips the actual water meter reading, the customer is not billed nor does the customer pay the full amount of the:water they utilized at that time. The Village does not know the full amount of water that was utilized by the customer until the actual meter is read inside the home. Eventually, the Village discovers the under reporting issue. The Village reads the actual meter and the customer receives a large water/sewer bill. The large bill is the difference between the under reported reading on the outside remote device and the actual water usage as shown by the water meter inside the home. When the difference is found, the Village will place the customer on a payment plan for up to one year to repay the amount of water utilized during prior years. The Village does not charge interest on the back payment. To educate customers, the Village places a izotice on the water bill asking customers to check the actual inside reading versus the outside remote. However, few customers take that action. After discussion, the consensus of the Committee was to recommend the following: • The Village should engage in a public awareness campaign about the need to check the outside remote reading against the inside meter reading. The following plan is recommended: - Staff will prepare a brochure as a door hanger for distribution to each customer. The information will also be inserted into the newsletter. The brochure will ask residents to check the reading of the inside water meter versus the outside remote device. Photographs of each will be displayed in the brochure to enhance customer understanding of what the water meter and remote reader look like; - Include a reader card in the brochure so residents can read their actual(inside) meter and provide the Village with the results; - Host a program on Channel 6 advising residents how to compare inside and outside meter readings; • When meters are replaced, be certain that Public Works staff shows the meter to the customer(the customer is required to be present when the meter is exchanged), and have the customer initial a form showing the actual reading; and, • Have any customers with a discrepancy pay the"average"of water/sewer rates since the Village went to Lake Michigan water in 1985. This will account for any customers who may have used under reported water in the past when the water was at a lower rate. The current water rate is $3.67 per 1,000 gallons. Village staff will research the average water rate since 1985. Replacing Water Meters The current water meters are over two decades old. They are reaching the end of their useful life. As they reach their age limit, the meters lose their accuracy. The number of meter related issues continue to increase each year. In 2000, there were 182 service requests involving meters. In 2003, there were 341 service requests involving meters. This trend is expected to continue with more meter service requests increasing each year over the prior year. Staff needs to study what type of meter should replace the current style meter. The cost to remeter the community is estimated at$1,500,000. Other technology may add to the cost of the meters as well as provide cost savings. Staff needs to analyze the various options concerning these types of meter and how to replace the meters. The old remote reading devices are no longer manufactured. All replacement meters use "touchpad"technology. With this technology, a hand-held device plugs into a remote reader outside the home. The touchpad will electronically read the inside meter and also advise if there are any problems with the meter. The consensus of the Committee was to have staff research the replacement of water meters with the meters being replaced throughout the community at one time. Staff will explore outsourcing the meter replacement program. The Village outsourced meter replacement work the last time meters were replaced some 24 years ago. Water/Sewer Rate Studv The Village's water/sewer fund operates as its own separate business enterprise. It is solely operated and maintained by revenue from water/sewer ratepayers. It has been some 20 years since the Village]hired a professional engineering firm to analyze water/sewer trends and rates. That study served the Village well,but new circumstances are compelling the Village to have another professional rate study undertaken this year. The Village budgeted $20,000 for that study. The changing factors compelling the need for a rate study include: • Chicago is annually increasing its price to JAWA for Lake Michigan water; • The Village purchases its water from JAWA. JAWA no longer receives discounted water rates from Chicago as the Chicago equipment buy-back program has ended. JAWA and its members are now paying full market value to Chicago for Lake Michigan water. • Manufacturers are large water users. However, manufacturers are moving overseas. This trend needs to be analyzed as new non-manufacturing businesses use less water. This trend impacts water usage in our business park now and in the future and needs to be included in a rate study; • The Village is nearing 50 years of age and an analysis needs to consider the cost of reconstructing aging water pipes and slip-lining of aging sewer pipes; • The cost of re-metering the community needs to be considered along with any potential savings from the re-metering work; and, • Other factors. Staff will pursue a professional analysis of water/sewer rates to determine available options as contemplated in the Budget. It will likely take the 2004-05 fiscal year to complete the water/sewer rate analysis. Program implementation would likely not begin until the 2005-06 fiscal year. The meeting adjourned at 10 am. C: Mayor& Board of Trustees, Village Manager, Assistant Village Manager, Assistant to the Village Manager, Director of Finance, Director of Public Works, Village Clerk, Village Attorney.