MEETING CANCELLED
GVAC (Greater Vernon Advisory Committee)
Thursday, April 19, 2012 - 9:00 am
5. Recommendations and Directions
The following recommendations are made to enable the study team to focus its efforts in the right areas and not divert effort to subject areas that are not realistic, or technically unsound. The Greater Vernon Advisory Committee is requested to provide feedback and direction on the following important strategic issues:
1. Affirm the water rate goals that are to be applicable to both domestic and agricultural water. It is highly recommended that the goals be the same for both domestic and agricultural water rates. It is important to note that even with common goals, the implementation strategies for each sector may be quite different and it does not mean that the water rates will be the same.
2. Reconcile the current agriculture water rate goal of “year to year rate stability” with the growing evidence that current agricultural allocation revenue is not sufficient to pay the agricultural sector’s fair share of costs. This situation is expected to become more disproportionate as infrastructure renewal demands grow over time as old infrastructure needs to be replaced.
3. In order to achieve the Best Practice goals for setting water rates, GVWU will need to begin allocating costs between the domestic and agricultural water customer sectors. Cost should be allocated for O&M costs, new capital costs, and infrastructure renewal costs. This process can be accomplished in varying levels of detail and accuracy depending on the GVWU’s needs. It is recommended that this question be referred to the RDNO Financial Officer for consideration. While a high level estimating process will be inexpensive to implement, it will lack refinement and accuracy. A more detailed and auditable process will be more expensive to implement, and will have a higher annual administrative cost to undertake. What level of detail will be required to support and defend the cost allocations decisions?
GVAC (Greater Vernon Advisory Committee)
Thursday, April 19, 2012 - 9:00 am
5. Recommendations and Directions
The following recommendations are made to enable the study team to focus its efforts in the right areas and not divert effort to subject areas that are not realistic, or technically unsound. The Greater Vernon Advisory Committee is requested to provide feedback and direction on the following important strategic issues:
1. Affirm the water rate goals that are to be applicable to both domestic and agricultural water. It is highly recommended that the goals be the same for both domestic and agricultural water rates. It is important to note that even with common goals, the implementation strategies for each sector may be quite different and it does not mean that the water rates will be the same.
2. Reconcile the current agriculture water rate goal of “year to year rate stability” with the growing evidence that current agricultural allocation revenue is not sufficient to pay the agricultural sector’s fair share of costs. This situation is expected to become more disproportionate as infrastructure renewal demands grow over time as old infrastructure needs to be replaced.
3. In order to achieve the Best Practice goals for setting water rates, GVWU will need to begin allocating costs between the domestic and agricultural water customer sectors. Cost should be allocated for O&M costs, new capital costs, and infrastructure renewal costs. This process can be accomplished in varying levels of detail and accuracy depending on the GVWU’s needs. It is recommended that this question be referred to the RDNO Financial Officer for consideration. While a high level estimating process will be inexpensive to implement, it will lack refinement and accuracy. A more detailed and auditable process will be more expensive to implement, and will have a higher annual administrative cost to undertake. What level of detail will be required to support and defend the cost allocations decisions?
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The GVAC Meeting has been cancelled!
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