Below are 6 key issues that were addressed during the open microphone session with Kevin Hunt, Ed
Means and Ron Gastelum. The below phrases and ideas were given by the attendees that participated in
this session. Almost every person in attendance contributed at least one idea to this conversation.

Labor Costs

  • Savings by consolidating water agencies?
  • Taking over smaller districts increases labor costs.
  • Is it important for the General Manager to be involved in negotiations?
  • Are there generous benefits for these times? We need to balance costs and keep up customer service for the district.
  • Agencies get burnt out on details with negotiations.
  • Supporting retired workers increases the labor costs.
  • We can’t let the public agencies get so far ahead of the private agencies.

Pension Liability

  • Contracts are very difficult to change.
  • Often you entice employees with better benefits packages when the economy is booming, but when the economy begins to decline you are put in a tough situation.
  • There is volatility on the investments side of things.
  • How do you continue to compensate for offered benefits in a bad economy?

Energy & Power

  • How to manage energy: conserve, find cheaper energy and limit the impact of regulatory initiatives on energy costs.
  • We don’t understand energy as an important sector of our economy.
  • The energy/pump cost is increasing.
  • We need to explore renewables further. Pump storage will only work for larger districts.

Chemicals

  • The chemical industry benefits from the natural gas energy revolution

Supply Cost

  • The supply cost is huge in the regulatory process.
  • Focusing on conservation is a short term plan.
  • Bidding against each other amongst water districts will end up driving up water costs.

Debt Service/Capital Expenditures

  • Our systems are aging. Our population is increasing. Can you defer capital expenditures?
  • Private sector funding… how can we tap into this? The Bond money will dry up in 2014.