Customer Advisory Committee Meeting # 1
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- Hilda Higgins
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1 Customer Advisory Committee Meeting # 1 Meeting 6:00 8:30pm; ARAMARK Tower, 1101 Market St., 15 th Floor The first meeting of the Philadelphia Water Department s Stormwater Customer Advisory Committee (CAC) commenced at 6:30pm with a brief opening statement by Howard Neukrug, Philadelphia Water Commissioner, Howard expressed his appreciation for the group s participation and his hope that the process would be as helpful to the members of the CAC, as it will be to PWD. Housekeeping Several housekeeping items were addressed before the beginning of the meeting and it was noted that alternates should be appointed to attend meetings on behalf of CAC members when they are unable to attend. Additionally, media participation and attendance was discussed. The CAC agreed that their names and affiliations would be released and the CAC agreed to speak to the media as a group but, in the interests of helping the CAC s success, would not initiate individual media contacts. The proposed meeting schedule was reviewed. Meetings will be held every three weeks from 6:00pm to 8:30pm with a meal provided at 6:00pm and the meeting commencing at 6:30pm. Meetings will not run longer than two hours without the CAC s permission. The June 30 th meeting date will be revisited as it may interfere with the July 4 th holiday. Overview and Charge A brief history of PWD s stormwater fee from the 1880s through today was presented, walking the committee through how the charges were originally captured on bills, through the changes to equivalent meters then to parcel based charges. It was noted that the original shift to a parcel based stormwater charges was based partially on the recommendations of the original CAC. The current situation was then presented. The CAC has been formed at this time to discuss: Rate Relief Special Ratepayer Cases Credits Incentives It was stated that PWD wants to hear the diverse opinions of the CAC members and wants the CAC to have a voice in the upcoming rate process. The CAC was presented with the following charge (noted in Handout#1): To provide advisory opinions to PWD on topics related to rate structure, stormwater credits and incentives, and special ratepayer situations to be considered as a part of the PWD s 2012 rates case. Stormwater User Fees A brief of overview of stormwater utilities was presented, beginning with a quick lesson on how nature manages stormwater via natural processes and what the consequences of impervious surfaces are on the runoff volume, PWD CAC Mtg 1 17MAY11 V3.doc 1
2 peak flows and pollution within a given watershed. These impacts equate to the following in terms of costs to a community: Peak Flow = flood control issues, conveyance sizing Volume of Flow = maintenance, volume treatment costs Quality of Flow = compliance, stormwater treatment The parameters most commonly used in the development of stormwater fees, Gross Area and Impervious Area, were discussed. These parameters characterize a property s contribution to stormwater peak flows, runoff volume and water quality. It was noted that Philadelphia is currently in transition from an unusual method of charging for stormwater (estimated meter base) to a more typical method. The CAC was presented with the basic tests that a stormwater fee should meet. They are as follows: Be fair and reasonable Be based loosely on demand Not be illegally discriminatory Have total costs substantially related to provision of facilities and services Include a reduction provision i.e. credits CAC Process and Activity CAC discussion topics were presented. The CAC will be able to have open discussions and blue sky ideas. In general, consensus may not be reachable but the ideas and ranges of opinions will be discussed. The legal aspects of recommendations and suggestions will be further investigated under separate efforts by PWD s legal counsel. It was stated that the CAC is intended to be an advisory/idea group. The CAC won t be responsible for making policy but will help inform the next rate case and provide a voice for the public in the process. The next rate case is slated to begin in January 2012, following the appointment of an Independent Hearing Officer selected jointly by the City Council President, City Controller and the Mayor. The givens, as presented in Handout #1, were discussed. Generally, these are boundary conditions, within which the CAC and PWD must operate. They include: PWD will continue to manage stormwater; the CAC cannot make costs go away (zero sum game someone must pay); and we must stay within legal boundaries. The ground rules for the CAC s meetings were then discussed and it was noted the CAC should reflect a Culture of Honor among all participants. The agreed upon ground rules are as follows: 1. Wait to be recognized 2. Stay on topic 3. One question at a time 4. Share time with others 5. Avoid sidebar discussions 6. Arrive on time and stay until the end 7. Send an alternate if you cannot attend a meeting. * *It was recommended that the core committee member brief the alternate and that the alternate be there to take notes and be the eyes and ears of the core member so that they can stay informed of the progress made with each meeting. PWD CAC Mtg 1 17MAY11 V3.doc 2
3 Meeting Topics Discussion The basics of the rate development process and what steps are taken in rate development were presented. It was noted that the meeting topic schedule generally follows this process. The steps generally are: 1. What is stormwater? 2. What does it cost? 3. How should we divvy up these costs? (basic rate structure) 4. Where else can we get money? (other fees and income) 5. Are there loopholes to close? (special cases) 6. Who should get a break? (exemptions) 7. Who should be rewarded? (credits) 8. What do we want to stimulate? (incentives) The topic titles then are: 1. Rates/Costs 2. Rate Relief/Allocation 3. Special Issues 4. Credits 5. Incentives The CAC discussed the proposed CAC meeting roadmap and the following changes were made: Based on the request of the CAC members, it was agreed that background information on the physical and financial structure of PWD would be provided. This information will be presented at the next CAC Meeting on May 19 th. At the third CAC meeting, ideas for Rate Relief will be presented, with the previous education meeting as the backdrop. The overall meeting schedule and topics will be adjusted in order to accommodate the education meeting. CAC Members David Wolf and John Bonner agreed to provide Joanne with feedback on what they would like to see covered in the background and education meeting. Per the CAC s request and recommendation, it was agreed to rearrange the meeting topics schedule to discuss incentives before credits. It was noted that the meeting schedule and proposed topics are tentative and can be revisited later if necessary. Based on the outcomes and recommendations of the CAC meetings, a final report will be generated and the CAC will have the opportunity to review and provide comment. There may be a need for an additional meeting to discuss the final report. Objective Criteria The previous CAC s Objective Criteria, as shown in Handout #1, were presented. Additions, deletions and changes to the criteria were then discussed and the following additional criteria were recommended by the CAC: 11. Payback Guarantee If I make a deal with you, I want to make sure that you stick to that deal. 12. Recognize past investments grandfather in don t make people go back and build 9a. Fair and Equitable Recognize inability to do anything to reduce fees. The CAC put the criteria to a vote. The voting results were as follows: PWD CAC Mtg 1 17MAY11 V3.doc 3
4 Number Criteria Votes 5 Do not harm the City (residents or businesses) Recognize past investments grandfather in don t make people go back and build 12 4 Promote good stormwater management behavior Payback Guarantee If I make a deal with you, I want to make sure that you stick to that deal Promote good stewardship of financial and environmental resources 10 9 Be equitable and fair / 9a Recognize inability to do anything to reduce fees 9 1 Be clear and understandable 7 8 Be revenue neutral 6 6 Be efficient 5 2 Promote stormwater revenue stability 4 7 Be cost effective 4 3 Reflect what has been learned in other places 3 Attendees List CAC Committee Members and Alternates First Name Last Name Affiliation Robert W. Ballenger Esq. Community Legal Services Thomas Becker Philadelphia University Paul Bonasch Perfecseal Philadelphia Michael Carter Manko Gold Katcher & Fox (alternate for Joe Manko) Byron Collins PennFuture (alternate for Brian Glass) Vincent Dougherty City of Philadelphia - Commerce Arty Elgart Elgart & Son Arthur Friedman Archdiocese of Philadelphia Brian Glass PennFuture Donald S Haas Brandywine Realty Trust Nick Iervolino Chapman Auto Group (alternate for Michael Chapman) Maia Jachimowicz City of Philadelphia - Finance Shelby Linton-Keddie Esq. McNees, Wallace & Nurick Sheilah M. Louis Esq. City of Philadelphia - Legal Lisa Magee Philadelphia Regional Port Authority Richard McClure Kennedy Wilson Properties Kes Pliuskonis Cardone Industries Joe Pyle Scattergood Foundation David Wolf Wolf Investment Corporation John Zoltowski City of Philadelphia - Controller (alternate for Harvey Rice) Other Attendees First Name Last Name Affiliation Joseph Clare Philadelphia Water Department Andre Dasent Philadelphia Water Department PWD CAC Mtg 1 17MAY11 V3.doc 4
5 Joanne Dahme Philadelphia Water Department Prabha Kumar Black and Veatch Amanda Lieberman Simon Public Relations Henrietta Locklear AMEC Earth and Environmental Brian Merritt AMEC Earth and Environmental Howard Neukrug Philadelphia Water Department Pat Perhosky Philadelphia Water Department Andy Reese AMEC Earth and Environmental Casey Thomas Philadelphia Water Department Katy Travaline Drexel University (invited by Glen Abrams) Sydina Williams Simon Public Relations PWD CAC Mtg 1 17MAY11 V3.doc 5
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