07-26-2023 Council Packet - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766-4029 / FAX: (651) 766-4048 www.littlecanadamn.org MAYOR Tom Fischer COUNCIL Teresa Miller Amanda Gutierrez Dave Miller Chris Kwapick TO: Mayor Fischer and Members of City Council FROM: Chris Heineman, City Administrator Sam Magureanu, Finance Director DATE: July 26, 2023 RE: Amendment #3 to Wholesale Water Service Agreement with St. Paul Regional Water Services. ACTION TO BE CONSIDERED: The City Council is asked to consider a Motion to Approve Amendment #3 to the Wholesale Water Service Agreement with the Board of Commissioners for St. Paul Regional Water Services. BACKGROUND: Attached is the amendment #3 to our contract for Wholesale Water Services with the Board of Commissioners for the St. Paul Regional Water Services (SPRWS). This amendment is the result of the rate study conducted by BakerTilly that concluded March of 2023. The purpose of the study as noted in the Project Scope of the attached report was to” analyze the City of St. Paul’s/St. Paul Regional Water Service (SPRWS) Water Fund to determine the appropriate rate structures and other revenue sources needed for operations and the financing of capital improvements. The rate structure and other revenue in the Water Fund must provide sufficient revenue to cover anticipated operating and maintenance expenses, debt service including principal and interest, capital improvements and replacements, and to maintain adequate cash reserves. The total revenue collected should reflect not only recent cost experience but should recognize anticipated future costs during the period for which rates are being established”. A copy of the study is attached to this report for your review. The results of the rate study resulted in proposed increases to our current rates as follows: