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+<~z~~uT~s <br />c; ty c~~un~; 7 <br />ilarch 12, 1~~f?S <br />Ser!er ~: Onti on #2 <br />!tater ----_ <br />Rates T.ncrease sei~~er rates at. an annual rate o~ 4%, subject; to <br />( Cont. ) P1~ilCC r.harges ( both renul ar oi 11 i n<7s antl 1 a!<e overfl o~~i <br /> billinqs) at or t~^lo~~~ the nro;;~cted le~iels contained in <br /> Exhib~~s F1-7 ~to A-S' of tiiie UtilitY Rate Study. <br />Tncrnase 4~~a~ter rates at an annu~~~l rate of 12°~ to fund <br />opera~f:ions and e1ii?iinate th~* exis~tin~ casi'i cieficit over a <br />t~~fo year ~iPriod and re-eval~aat~~ rate needs at that ~tine. <br />The 1~~37 incre<~s~ may be reducect subject to a favorab1e necia- <br />tiatetl contrac~ted U~~~.te~r r<~te ~Prom t;hF Ci ty r~f St. Paut . <br />Thn ,~i~iditor reconirnencied Out:ion rk2 ~o t~~e Counril. <br />1'he ?.uc.tit:or ~lso recomiTiendeci tha~t the comsnerci~l and apart;meni: seti>>er <br />ci.is~o?~iers have a,~!inir:ium s2~~~er charge equa1 9;o tha~: of ~tPie resident'ial <br />se~ter r~t;e. <br />Tne ~ucii tor sta'ted that he i s r~COmmendi nq ~'ne Ci ty' s svat~r ra.t~s <br />be increased 1?°l, and sesver rat~s be incr~as~~c! 4%. 7he A~ar;itor <br />also rect?enn^nded that the wat~>r avai1ability cha.rg~ he increased <br />1;0 ~11.50 par q~.iart~r. <br />~irs. Sc~lze quest'iori=~d ~;Pie substantia1 inc,rease in ~thP ~~~ater availab~lity <br />charqe. Mr. R1esener repliecl t'~~at this charre cov2rs the maintenanc~ <br />COStS Of 1;(1Q ~j L`y ~ S SS~S$E'IA, <br />T1ie fluditor s~ace~i th~at basec! on hi , reviev~ of t'ne set,~er and aiater <br />operations of the C4ty, h~ recomniends: <br />P~~lonit~~r t'ne actual. c`iarqes of P~1!CC and the progress on the <br />corrective construction to t'ne la"<e ov~rflo~~i situai:ion. <br />If 1he overflar~ situation is correctad as in~ended, the <br />City should re~alize sic~niFica.nt decreases in ttie total <br />billirias from the ;?~riCC in 1S~)£~8 rznd 1989. An absence of <br />the red~actiori ~=iill require an amend~iu~nt ~o tne r~~tn plan <br />as ~escri bed i n 4:Yie Ut~i 1 i i;Y Rat~! Si:udy. <br />`leterraine tt~e cost e~`~fectiveness o~f Continuing to purc~~ase <br />!~iater frorn th~ City of St. Pau1. If the City ~ietc~rroines <br />that the construction of a sup~~1y system is cost i~roh~ibi~~ive, <br />then nt~rsue a. more favorable negotia~t~d rate. <br />Pursue nenotiations ~rith thF~ St. Pau1 '.-~ater Utilifiy for rate/ <br />cost ciecreases. <br />~.sCat~lish a contribufed asset renlacei~u~nt polic~i to s)~ste~natically <br />afifect; i:h° replar.ei~~t~nt qf contril>i.ii:ed water and sas~r~r systFms <br />wPiirh had bFen previo~.~s~ly assesse~~. <br />G~ther a.dditi~nal in~Forr:.iation rer.~ar~linn. i;he cosfi: of ~i ~,aater <br />si~puly sYS%em. <br />P~~ge -5- <br />