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Regular City Council Meeting <br />June 16, 2003 <br />Page 4 <br /> <br />the contractual customers data is 36 months old. <br /> <br />Councilman Bell questioned the use of old data. Mr. Stowe advised that because <br />the contract for Campbell Soup called for rated to be reviewed every three years, <br />the city's practice had been to review rates every three years. Mr. Stowe said <br />that in this particular study when they were dealing with the 2001-2002 budget, <br />the city was late getting started. Then they had situations to arise, also, which <br />delayed them a couple of more months. He said this study has been somewhat <br />tardy in getting completed and they were willing to take some of the blame for <br />it. <br /> <br />City Manager Malone advised that they had suggested in the past that the city <br />should update the rate annually, but the City Council did not seem to want to go <br />that direction. He thought the reason for that is each time a study is presented <br />based on the Campbell Soup Company' s contract, they do not want to lay out the <br />money to do a full rate study. Once the study has been presented, it is for a three <br />year period, then the city has all of this additional debt to meet these mandates, <br />and it is uncomfortable once the rates have been introduced and no body wants <br />to visit that for the next couple years, so, that is how we have gotten into this <br />pattern. He said each time they have expressed interest in doing the rate study <br />annually so they will be fresh and an incremental increase if necessary. City <br />Manager Malone advised that they have the results back for the lost water study <br />and they have been working to reduce the lost water by repairing mains in the <br />systems and looking for leaks. He said they have had an ongoing program to <br />address these problems. The City Manager advised that they have switched out <br />all of the meters and believe about 100% of all meters are touch-read. He said <br />they have an annual program changing out about 700 meters a year. <br /> <br />Herb Campbell, Director of Utilities, advised that they are down to about 15% <br />for lost water. He said they were making progress. <br /> <br />Mayor Fendley asked Mr. Stowe to put in the actual numbers since he already <br />had his data base up for September ,2002, and since Mr. Stowe was working on <br />that budget. Mr. Stowe advised that they would have to plug in both the budget <br /> <br /> <br />