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MINUTES <br />CITY COUNCIL <br />MARCH 25, 2015 <br />CONSENT' <br />AGENDA <br />2015 WATER <br />& SEWER <br />RATES <br />Montour introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2015-3-60 - APPROVING THE CONSENT <br />AGENDA WHICH CONTAINS THE FOLLOWING: <br />*APPROVAL OF THE VOUCHERS; <br />*APPROVAL OF INCREASE IN ELECTRICAL FEE SCHEDULE AS <br />REQUESTED BY THE ELECTRICAL INSPECTOR; <br />*APPROVAL OF PURCHASE OF NEW COPY MACHINE <br />The foregoing resolution was duly seconded by Fischer. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />The City Administrator reviewed his report dated March 20, 2015 <br />relative to 2015 Sewer and Water rates. <br />With regard to sewer rates, the Administrator noted that during 2014 the <br />City had a lower than anticipated surplus of $73,540 compared to an <br />estimate of $121,660. This was due to the repairs and maintenance needed <br />at the Keller lift station. The Administrator also pointed out that during <br />2014, the City lowered its minimum sewer charge from $55 per quarter to <br />$50 given the dramatic reduction in treatment costs paid to Metropolitan <br />Environmental Services. The Administrator pointed out that treatment <br />costs for 2015 are now estimated to increase by almost $100,000. The <br />Administrator indicated that based on staff's analysis of sewer rates, the <br />recommendation is that the 2015 rates not be increased. <br />With regard to water rates, the Administrator reported a net loss in the <br />Water Fund of $116,442, while the projection was $14,746. The variance <br />is largely attributable to the wetter than normal summer as well as the cost <br />to repair eight water main breaks and the resultant water loss. These <br />repairs occurred when the water tower was being repainted and not in use <br />and the higher system pressure that resulted. The Administrator indicated <br />that the City is anticipating a credit of approximately $135,000 from St. <br />Paul Regional Water Services for charges associated with the execution of <br />a new contract. This contract amendment results in a lower wholesale <br />water cost from 71% to 65%. This credit more than offsets the City's loss <br />in 2014. <br />12 <br />