Rochester Hills Legistar System

* Committee is coordinating input from our Save Open Space Rochester Hills Friends

which is a committee that had been formed and is operating in the community for the

last year or two.

* Committee currently have several versions of Open Space Preservation draft ballot

language that is being reviewed.

* Committee is working with Kurt Dawson to develop a millage table showing projected

tax values for the next ten (10) years at various millage rates and what monies would

generate.

* Committee has reviewed as many as 300 parcels in the community and is

coordinating with the Planning Department Master Land Use Plan update.

* Committee is working to recommend non-tax solutions.

* Committee is working on understanding how City Funds are Levied through other

grants, studying best practices around the Country and looking at what other

communities have done and are doing in Michigan and elsewhere.

* An update will be provided at next weeks City Council meeting by Mr. Funk.

* Open Space Preservation Ad-hoc Committee would like Council to review and/or

accept ballot language by mid-June for September ballot.

Committee discussed purchase of AMR Radio Read System noting that City Council

identified a goal for DPS to minimize future water and sewer rate increases.

Roger Rousse, Director of DPS, presented the following:

* Operations, Finance and Customer Service were areas considered when DPS began

researching different options.

Operations and Operational Difficulties to be corrected by AMR Radio Read:

* Work force has been reduced approximately 25% percent over the past two (2) years.

* Garage employees currently consist of thirty (30) crossed trained employees.

* Work force reduction creates meter reading scheduling problem.

* Meter reading crew consists of seven (7) employees: three (3) installers, three (3)

meter readers and one (1) coordinator.

* Meters must be read within a nine (9) day window for each of the six (6) billing cycles.

* New development increases meters each year by approximately 200.

* Meter reading becomes more and more problematic each year.

* Community is moving from a construction phase to a maintenance phase which

affects meter reading, meter repair and replacement.

* Currently approximately 31,000 meters are in service with 4,200 being very old and

not reading at 100% percent.

* Meter rotation program will consist of replacing these 4,200 outdated meters and

generate an increase of revenue.

* The demand for labor in this area is increasing each year.

* Estimated ten (10) hours per week coordinating the meter crew, two (2) hours per

week on complaints, four (4) hours per week in Accounting.

* Analysis indicates that the number of staff will be reduced by three (3) employees.

* AMR Radio Read would read the entire City in less than eight (8) hours.

Kim Murphy, DPS Coordinator, explained handout/spreadsheet.

Current Meter Reading Costs remaining the same with the following assumptions:

* Annual wages assumes a five (5%) percent annual increase.

* Annual benefits are actual.

* Equipment expense assumes a one (1%) percent annual increase.

* Meter readers assumes 200 new accounts added annually (500 have been added

annually over the last few years).

Future Developments:

* Arcadia Park

* Country Club Village

* North Oaks

* Clear Creek

* Avon Lakes

* 2005 - 2006 assume three (3) meter readers needed.

* 2007 - 2024 assume four (4) meter readers needed.

* Forecasted expenditures for the next 20 years are $9.5 million in meter reading

expense.

Diane Keller, Accountant, predicted four (4) meter readers will be required before 2007.

Kim Murphy, Administrative Coordinator, concluded that the project has a ten (10) to

eleven (11) year payback period .

Bud Leafdale, DPS Superintendent, explained cost effective AMR Radio Read noting

the following:

* Labor costs are increasing.

* Meter reader equipment costs are increasing.

* Reduction in the number of mall meters.

* Inclement weather causes a reduction in actual work days available.

* Accident liabilities due to slip and falls reduces the number of employees available.

* AMR Radio Read requires a lesser number of holes drilled in homes than other

vendors.

* AMR Radio Read does not require homeowner to be home.

* AMR Radio Read can read the current old TTR meters where the other vendors could

not.

Committee members discussed warranty of MXU batteries noting the following:

* Full replacement in the first ten (10) years.

* Pro-rated replacement in the following ten (10) years.

Committee discussed staff reduction savings noting the following:

* When AMR Radio Read System is fully operational, meter reader crew currently

seven (7) will be reduced by three (3) employees.

* AMR Radio Read System can convert to a fixed system at a future date.

Committee members discussed initial cost to residents noting the following:

* Initial cost is $130 to purchase the MXU unit spread out over ten (10) years.

* In conclusion, analysis indicates that the City will save $8.5 million over a 20 year

period using the AMR Radio Read System vs. continuing the way we read them now.

Committee discussed Conservation Easements noting the following:

Roger Rousse, Director of DPS, presented the following:

* Planning Commission has and continues to require developers to put in Conservation

Easements.

* Planning Commission requires developers to mark the Conservation Easements.

* Planning Commission's intent was not to create something for the City to maintain, but

to create a conservation area that residents stay out of and leave it in its natural state.

* Conservation Easements are set-up to maintain native grasses, plants and trees.

* Consequently, there has never been something in place to maintain the Conservation

Easements.

* City found out about the Conservation Easement encroachment last fall where the

developer made a "field adjustment" on installation of a pool. When the resident tried to

sell their home, the survey indicated encroachment.

* Preliminary survey shows there are maybe 100 or more of Conservation Easement

encroachments.

* DPS is looking for direction on how or whether to go ahead and start maintaining

Conservation Easements.

* First step is obtaining an inventory of the encroachments

* Second step is to obtain City Attorney's opinion.

Mr. Barnett requested Mr. Rousse obtain additional information for May Committee

meeting.