Only 11 residents showed up for the two city workshops held last week at the civic center. Three people attended the workshop held Tuesday afternoon and eight residents were in attendance Thursday evening.</p><p>The topic of the workshops was the proposed water and sewer utility rate study. Assistant City Administrator Wayne Padilla led the workshops study. He was assisted by Fire Chief/Acting Public Works Director Harry Turner.</p><p>Padilla opened the meeting by telling those present that the evening was all about answering their questions.</p><p>The presentation overview included:</p><p>* Study approach and financial plan.</p><p>* Key Assumptions.</p><p>* Current utility operations.</p><p>* Current cash flows</p><p>* Proposed rates and cash flow.</p><p>* Rate Comparisons.</p><p>Padilla explained that following the workshops, the study would then go to the council on March 8 and public hearings would begin in May.</p><p>The first portion covered was the Study Approach and Financial Plan. Padilla said the first step was to establish an equitable rate structure that is simple to administer. The rate structure would be based on accepted industry standards. The rates are proportional to the cost of service provided to each user category. Padilla pointed out that no user category would subsidize another.</p><p>"What we are proposing is not unique to Chowchilla," Padilla stated.</p><p>The financial analysis performed will help determine the minimal annual cash flow required to maintain acceptable service levels like operation and maintenance costs, along with capital improvements.</p><p>Under the capital improvement plan, Padilla said the city would have to anticipate the proper mix of cash and borrowed funds. He discussed the pros and cons of borrowing the funds and indicated the importance of saving some money for a rainy day by building up the reserves.</p><p>The state of California mandates now require that all properties receiving water service must have a functioning water meter starting in the year 2012. The estimated cost to install new meters and replace older meters is $2.2 million. The meters proposed by the city will be automated meters. The automated meters are suppose to save time and will require no new staff to be hired to read the meters. The new meters will also give more detailed information.</p><p>The current utility operations have to be considered. The city's past operating standards for the water and sewer utility programs have focused on the maintenance of a safe and clean system with little reinvestment in the facilities that are very old. Sewer lines need to be examined and scheduled for replacement before they become a problem. Upgrades or replacement of mechanical components need to be scheduled in phases.</p><p>The city is proposing a $3.3 million bond in the fiscal year 2011. The debt is proposed to be issued in Jan. 2011 with a bond interest rate of three percent, a bond term of 20 years and bond issuance expense of three percent.</p><p>During the meeting Padilla also answered question about homes with current meters and the installations of new meters.</p><p>Many of the homes that were build with meters are now outdated. Padilla explained the benefits of having all of the city on the same type of meter.</p><p>Padilla also noted the city was making plans to piggy back with another city to purchase the meters as a much lowered cost.</p><p>He discussed the increase in city utility bills but assured the residents in attendance the city was making every effort to keep the increase at a minimum and would review the costs each year.</p><p>There are 4,662 services in the city. Of those services 1,950 meters have already been installed. The average cost per meter to be installed in $471.90. That cost incudes meter installation, meter, automated meter reading device and meter box.</p><p>The proposed timeline began with the two workshops. Notices will be prepared to be mailed on Mar. 8 and the notices will be mailed on April 8. On May 26, a public hearing will be held. If passed the rate implementation will begin on July 1 of this year.</p><p>Residents will have the opportunity to voice their opinion to the increase in their city utility cost.