Agenda Packets - 1995/07/10 - Laserfiche WebLink

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Option #2 Changeout Commercial accounts to phone read, residential to touch read. Total cost of Project : $505, 914 WAC Fund Contribution: $305, 914 Special Project Loan : $200, 000 07 interest loan, 10 years Projected Revenue Increase $31, 500 Annual loan payment $26,613 Contracted Meter Reading $ 5, 880 (includes 4 readings) * 1 9 9 5 Budgeted amount for 1 contracted reading, $4, 095 . - -- ---Possible-metercharge quarter -potentia-llynot-necessary --- A meter charge is not necessary for the loan repayment, although Council may wish to initiate a charge to create a fund for future meter system upgrades, or system wide water related improvements, similar to the Vehicle and Equipment Replacement Fund. Also at the June work session, Councilmember Trude suggested an alternative system that would not be as high tech, but would address all of staff' s and Council' s concerns, and not burden the customers of the City any more than necessary. While not fully automated, the second option will accomplish this and address the current dilemma of dealing with a aging meter system. This system, will increase productivity, virtually eliminate data input for billing, and will provide a substantial base for a future upgrade to a totally automated meter reading system. *** The third option would be to do nothing, and continue to lose potential revenue. Option #3 Do nothing to the water meter system. Water Enterprise Fund will lose approximately $30, 000 this year, and through aging meters, resulting in decreased accuracies, the fund will continue to lose increasingly more revenues in the future. It should be noted, that these figures are based on calculations of a random selection of water meters, for percent accuracy and projected revenue estimates. Not all commercial accounts will be capable of phone read. In this case radio read equipment will be install, which is slightly higher than phone equipment in price . As mentioned earlier, the Water Department is an Enterprise Fund, which should by design, be self funded through it' s revenue earned. Currently the fund is not receiving all of it' s potential revenue. Operating the Department, or City, as if it were a business, which was one of the Focus 2000 goals, may suggest that this is an opportune time to recoup revenue earned, and prevent potential loss of future earnings . (over)