03-12-86 Council Minutes - Laserfiche WebLink

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r~ItlU7F i City Ccuncil ~~arr,h 17., 1~~3r; P1ayor 1=ah~y laft the meeting at 7:50 P.P~1. Uti 1 i~y The ',',i ~ty 1\udi tor presented the CounC41 !vi th ~ report cte~l i ng eai th Ra~t.es ~he City's ~3iter rates and rate struc.ture. 7his rF~ort. cor,ipares Little Canada's rates G~tith those of a ne~ighborin~ city. F~crencla It~i~~ hlo. 5 Voto outlii7ed ~the ra~:e s~tri.icture by~rrhich Little Canada is charged for Yrater bv i,he St:. Paul l~tater Utility. Ttie City lias a four-tier rate sf:ructt.ire, ho!:fe~ier, 9:he City n~~s n~ver ~urChased enoUC~h !~~ater t~ qet into t:he third and fourth tiers o~f ~th~ stri.icture. Therefor4, the City acti.ially t~as a t~io-i~.ier rat;e struct~are. T'ne neighborinn cit:y has a~Po~m-f.i~r str~ar.ture t4iat is mor~ spread out and atlo~=~s ~them ~,o qet 1 arq2r di scounts ~Pas~t~ar. A1 so, i.he Ci t~/ of I_i t~t1 ~ Canada i s br~i nc; c.haraed 110% n~F 'th~ ra~t^ that is c.h<~rpec'i ~the res~cteni:ia~i St. Pai.il consuin~r, erh'ile the neiphboring ci t~/ i s~ bei ng chargecf 100°~ of the rate. The Audi tor noi nted o~rt thai; Li ~tt,l e Canada osrns an<! Pias pa7 d for ~i ts orm ~rtater to;-aer anc! aaat~rir.ain linns. t_ii:~le Canada t:<~ps rinht; inY.o St. Pau1's main. ThereforP, St. Pau~l is not distrihut:inc,rl~it;tl~ ~anada's wa~;er. Tf~~ Nudit.or report~~~c! ~that he P»s revi~4vecl ~the ooerat;in~ s~tatements for St. Paul's ~;!at2r Operat~ing F'und. Distriui.ition costs and depreciation expenses ~:,~ou1d not apply in Little Canae"<1's sitiaati~n as the City o~rms its o4an syster~i and taos dire~ctlv into St:. °aul's sVSter~. The Auciitor's conclusions ever~ that Lit,tl~ Canada is payinn pre!nium nr9ces for its ~~rater i~hen compared ~to a neiciiboring city. The r^~asor,s For this are: 1. T,~e nreater ~~!ater i~isag~ by the neighboring cit~~; ?, ThP ~~d~ditiona.1 lOh rate being charqe ~~i~:t1e Canada; 3. 'fhe tier struci:ur2 ~~hich does not al1oua for s~.ibstant~ial discounts for I_ittlt~ ~anada; 4-. St. Paul chars~es L~ttle Canada basec! upon tota1 costs of t.'ne St. Pai~l 4later tlti 1 i ty rath~r Y.han addi ~ti ona1 cos'ts of nrovi di ng si.ic`~ v!a9~.er. TPie f~udi tor suggest~d i:hat the o~atter be turnec; over t.o th~ ~i ty Flttorney to attemnt to n^gotiate a mc~re favorabl~ contract for t'~e City. T!ie Auc!itor's rei~ort contained suc!n,ested terms tha~: the City shoul d attemnt to n-aqoti a tc~. The ~t~orney stateti tPia'c a~t f,hi s noi nt he and tne tludi tor and Ci i:y Cleri< ~rrou1cl devise a plan of ar.tion to approach St. Pau~l with. Council was ac:reeai~le to tnis annroarh. P~ir. Faney returnEd to the mcet~nq at $:10 P.P". Pac1e _r.,_