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~ . . ,I / .~r; I../'.?'~ Page Three Minutes #683 April 14, 1999 PROPOSED CITY/UTE CUSTOMER EXCHANGES Rate & Policy Committee Chair Jaynes reported that a number of public meetings were held and public comment received was minimal. The Rate & Policy Committee agreed that, in light of the significant benefits to both the City and Ute, and the seeming indifference of both entities' customers, they recommend these proposed customer exchanges be approved by the Ute board. The Chairman called for a vote on the motion, which carried. PROPOSED TAP FEE & RATE INCREASE Rate & Policy Chair turned the floor over to the Finance Director who presented a proposed increase numbered "Exhibit 1" (copy attached and made a part of these minutes.) Ricks pointed out that this exhibit showed a comparison between the existing rate and tap fee charges and the proposed increase which was a result of the last joint Rate & Policy and Finance Committee meeting. Mr. Jaynes stated that the Rate & Policy and the Finance Committees recomrnend adoption of this rate increase. Mr. King asked the Manager if changing the rates internally would cause any problems? The Manager indicated that changing the rate tables would be no problem, however, he and the Finance Director had some concerns about the commercial rate being based solely upon meter size as was discussed at the last joint committee meeting. There are several large consumers on residential meters and commercial operations which should be commercial rates, even though they are on 3/4" meters. Exhibit 1 does not allow for changing these meters to commercial rates. He then presented an alternative numbered Exhibit 2 (copy attached and made a part of these minutes.) Clever explained that Exhibit 2 maintains the suggested rate increase, however, also includes a 3/4" and 1" commercial rate. Also, commercial rates do not experience ascending block rates. There will be a number of 3/4" residential meters which will be changed to commercial rates if the board adopts this proposal. The discussion then focused on commercial vs. residential meters and the qualifications for each when the new rate structure is applied; the criteria used and the amount of money the District needs to realize to pay for capital improvements over the next several years; and an agricultural rate. To clarify a question from Mr. Burkhalter, the Manager explained that the new rates ascend on 3/4" and 1" meters, but not on 1 1/2" and above.