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MINUTES <br />CITY COUNCIL <br />MARCH 12, 2014 <br />factors out of the equation, the City's loss would have been $24,871. The <br />Administrator reported that a major factor in proposing the 2014 sewer <br />rates is that the Metropolitan Council Environmental Services has reported <br />that the City's treatment costs for 2014 will decrease by $255,000. This is <br />due to the City having reduced flows as a percentage of the overall system <br />flows. Staff is not sure this will be sustained into future years, but is <br />hopeful that the result of recent sewer lining projects done in 2012 and <br />2013 has resulted in reduced flows and is not an aberration caused by the <br />last couple of fairly dry summers. The Administrator indicated that this <br />reduction provides the opportunity to do some rate restructuring. As a <br />result, staff is proposing a reduction in the City's minimum sewer charge <br />from $55 per quarter to $50. This reduction will benefit low volume users <br />the most. Staff is also proposing no increase in the per 1,000 gallon rate <br />of $3.58. The Administrator noted that with this change staff projects a <br />net income of over $121,000 for 2014. He also noted that staff will <br />continue to evaluate Met Council changes to see if further reductions will <br />be possible in future years. <br />McGraw asked if this is the first year that sewer rates were being <br />decreased. The Administrator reported that there have been some years <br />with rate decreases. He noted that the decrease being proposed for 2014 is <br />conservative since staff was unsure whether that the Met Council rate <br />decrease would be sustained. The Administrator noted that rates have <br />whipsawed in the past given Met Council charges were flow driven. The <br />new methodology for determining these charges may provide more <br />stability in these charges. <br />Montour asked the history of water rates for the past 3 to 4 years. The <br />Administrator indicated that last year water rates increased by <br />approximately 5 %. He noted that rates have reflected a pass - through of <br />increases that the City has received from St. Paul Water. <br />Keis asked about the City's lawsuit with St. Paul Water. The <br />Administrator indicated that the City has served St. Paul Water with the <br />suit, but has not filed it. The basis of the suit is that St. Paul Water has <br />included infrastructure costs in their rates for projects that do not benefit <br />Little Canada. The City has requested that St. Paul Water adjust those <br />rates hack to when these bond costs were first included. <br />Montour asked if the water meter replacement program is now complete <br />and paid for. The Administrator replied that it is. He indicated that future <br />water system improvements include the repainting of the water tower and <br />possible replacement of valves and bolts on water lines when Rice Street <br />is reconstructed. The Administrator reported that there are corrosive soils <br />3 <br />