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MINUTES <br />CITY COUNCIL <br />MARCH 13, 2013 <br />AGENDA WHICH CONTAINS THE FOLLOWING: <br />*APPROVING THE VOUCHERS; <br />*APPROVINGA PARTIAL PAY REQUEST FOR HOFFMAN- <br />MCNAMARA FOR COUNTY ROAD B -2 LANDSCAPING AS <br />RECOMMENDED BY THE CITY ENGINEER; <br />*AUTHORIZATION CREATION OF A CITY YOUTUBE ACCOUNT <br />AS RECOMMENDED BY THE CABLE TV PRODUCER; <br />*APPROVING THE 2013 SAFETY TRAINING CONTRACT WITH <br />SAFEASSURE AND AUTHORIZING EXECUTION OF THE <br />CONTRACT BY THE CITY ADMINISTRATOR AND CITY CLERK; <br />The foregoing resolution was duly seconded by Boss. <br />Ayes (4). <br />Nays (0). Resolution declared adopted. <br />2013 The City Administrator reviewed staff's report dated March 8, 2013 <br />WATER & relative to 2013 Water and Sewer Rates. <br />SEWER <br />RATES With regard to the Water Budget, the Administrator reported that the 2012 <br />Budget for the Water Fund anticipated a net loss of' $22,308, with actual <br />results at a net profit of $21,007. The positive variance was largely <br />attributable to higher than anticipated water sales, and a savings in <br />personnel costs. The Administrator reported that for 2013 St. Paul <br />Regional Water Services (SPRWS) is implementing a 6.5% rate increase. <br />Applying that increase without a Little Canada rate increase results in a <br />projected net loss of $63,278. The Administrator noted that the City uses <br />a 3 -year average on water purchases from SPRWS when budgeting and <br />applies a 4% under - billing factor based on historical averages. The <br />Administrator also noted the requirement for the City to depreciate its <br />infrastructure, which is a big factor in these calculations and gives us the <br />ability to absorb "reasonable" losses. <br />The Administrator then reported that another factor in play for 2013 <br />related to the Cost of Service Study that SPRWS recently completed. <br />Under the current contract, the City pays 71% of the St. Paul rate as a <br />wholesale customer. SPRWS has increased their rates substantially the <br />last few years given the large debt issue they used to finance system <br />improvements, many of which had little to no benefit to Little Canada. To <br />help rectify this, SPRWS conducted the rate review study. While staff has <br />not completed its review, the good news is that Little Canada's percentage <br />2 <br />