Cloverdale looks to lower utility rates

Thursday, May 15, 2014

CLOVERDALE -- The Cloverdale Town Council met for its monthly meeting Tuesday evening during which it was presented with a utility rate study in an effort to lower the current sewer rates.

Financial adviser Steve Brock presented the study, which would recommend switching from the town's current flat rate, which was approved in 2012, to a volumetric rate.

According to IDEM, 4,000 gallons is considered to be the typical residential monthly water consumption. That being said, the current flat rate of $70 a month would go down to $64.80 for a three-year rate or $62.30 for a one-year rate.

"If you can conserve your water usage, you can receive a much smaller sewage bill," Brock said. "Over half of the residential customers and most all of the small commercial businesses in town would be getting a bill that's less than the current bill they're receiving."

Brock also noted that it is likely that 60-70 percent of the town's customers would likely use less than 4,000 gallons a month. However, these new rates will keep the town in the black on its wastewater fund.

"I would recommend a one-year or a three-year rate. The reason I would do that is because we're switching from a flat basis to a volumetric basis of metering," Brock explained. "That means that people are going to change their consumption habits and I don't want to lock ourselves in for five or seven years on consumption habits that really are going to change. People who use the least will save the most."

The council tentatively approved a three-year return rate, which will be discussed during next month's meeting. The base charge for the three-year return is $30 with a charge of $8.70 for each 1,000 gallons. However, a minimum of 2,000 gallons will be billed.

"This will really help the people who need it the most," Council President Coweta Patton said. "That's why we're trying to do it this way."

Once again, the council also discussed the purchase of radio-read meters as it would potentially earn the town more money.

Utility Clerk Brittany Duncan came before the council with a list of vacant properties that the town has been looking at.

At the time of the meeting, there were 116 vacant properties, 36 of those had no meters at the home. Duncan explained that as the homes were being checked, the utility noted homes that they found with water meters currently on with no service agreement in place.

It will help the people who need it the most

"The water was used somewhere and we weren't notified," Duncan said. "A lot of times renters call and have the water shut off and then new renters move in and turn it on themselves. We don't really know."

In total, 89,300 gallons of water was found to be used without being billed, an issue that the town believes could be fixed with the new radio-read meters.

"The reason we want to do it is because the meters would read more accurately," Clerk-treasurer Galloway said. "The radio-read meters would eliminate the need for time-consuming manual reading and for allow daily readings."

The meters would also eliminate the need for estimated billing, which was an issue this winter when utility workers could not get out and read the meters, at a cost of $156,000.

"As meters get old they run slower," Brock said. "As meters run slower they don't get all the consumption out. You're getting bad information from meter reads on how to bill your data. If you get new meters in, you'll get more accurate reads and you get more revenue for your sewer and water utility and you wouldn't need to have as much of a rate increase."

Although the amount of water being used was startling to the council, it once again chose to table the leasing of the new meters as the town currently has several meters that were purchased last year that still needs to be installed.

In other business:

* The town approved purchasing four new yard hose meters at a rate of $35 each, which will be available for residents to rent.

* The town brought in $5,033.05 from the Food and Beverage Tax. It was agreed that $900 will be taken from that money to pay for Keystone to add the storm water billing into the system.

* The council approved Ordinance 2014-10, amending the town code to clarify permit requirements, fees and changes.

* The council approved Ordinance 2014-11, amending the town code to clarify permit requirements for demolition.

* The town also approved Ordinance 2014-12, amending the town code to provide for a fine consistent with modern regulation.

* Superintendent of Public Works Charles Knuf also came before the council to advise that there is a washout on Beagle Club Road, which the utility department will fix themselves. Knuf also advised the council that the department will also be enclosing the remainder of the ditch line at Market and Grant streets. The total cost for both projects is $2,778.60 plus $175 for freight, which was approved by the council.

* The council approved the purchase of a new scale for the water plant to weigh fluoride at a cost of $2,426.

* A preventative maintenance agreement for the generators with Cummins Cross Point was also agreed upon at a cost of $1,966 a year.

The next Cloverdale Town Council meeting will be on Tuesday, June June 10 at 7 p.m.

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