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Workshop Memorandum 17-014



                Date:          January 10, 2017

                From:          Matthew Porras, Management Analyst
                               Kathryn Hallberg, Management Analyst
                               Joseph Zoba, General Manager

                Subject:       Discussion Regarding Construction Meters, Agriculture Meters, and Residential
                               Hydrant Meters

               On October 4, 2016, the District staff received a request from Mr. Al Ineichen requesting a waiver
               in monthly fees and construction meter deposit for his water hauled to 36610 Singleton Road,
               Calimesa.  Since the District staff does not have the authority to waive the monthly construction
               meter fees or the deposit for the construction meter, the item was scheduled for a discussion at
               the board workshop on October 25, 2016 [Workshop Memorandum No. 16-161].

               On October 25, 2016, the board members, District staff, and Mr. Ineichen discussed the practice
               of  hauling  drinking  water  from the  District’s  drinking water  system  to  property  owned  by  Mr.
               Ineichen.

               On December 14`, 2016 District staff met with Mr. Al Ineichen at his property to discuss the issues
               and resolutions that could be presented to the Board for consideration.  At this meeting, Mr.
               Ineichen stated that he does not haul any potable water, he only hauls non-potable water for
               irrigation purposes.  Mr. Al Ineichen questioned the purpose of the construction meter deposit of
               $1,500, considering the meter is placed and locked on a District hydrant and maintained by the
               District staff.

                              th
               On January 10 , 2017, the board members, District staff, and Mr. Ineichen discussed the policy
               regarding construction meter costs, depreciation, installation cost, facility capacity charges, and
               water usage of current construction meter customers.  With input from the Board and Mr. Ineichen;
               District staff determined the Daily Demand Charge needed further review and evaluation.

               Review of the current Daily Demand Charge of $2.30 per calendar day led to the determination
               that the depreciation cost of the equipment over a 5-year period, and meter reading cost would
               comprise the new Daily Demand Charge.

               Current Construction Meter Deposit, Demand Charge, and Consumption Charge.

                   •  Construction Meter Deposit. A construction meter deposit of $1,500 per meter shall be paid
                       prior to the District installing the temporary construction meter at a fire hydrant as determined
                       by the District.

                   •  Daily Demand Charge. A service charge of $2.30 per calendar day shall be charged for the
                       rental and fixed cost associated with this service.







                                       Yucaipa Valley Water District - January 31, 2017 - Page 38 of 68
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