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CITY COUNCIL WORK SESSION September 6,2011 <br /> APPROVED <br /> 136 The council requested that the Charter Commission Chair and Vice chair be invited to <br /> 137 attend the public hearing on the amendments. <br /> 138 <br /> 139 4. Discuss Current Conservation Water Rate Structure—The mayor noted that he <br /> 140 requested a discussion about the City's water rate structure. He recalled that the council <br /> 141 previously received a study on water rates, was asked to change the rate structure and did <br /> 142 so. However the impetus of the change was to impact use and he doesn't believe that has <br /> 143 happened. He still has a concern; Lino Lakes is a family oriented community and the new <br /> 144 rate structure seems to punish families. He suggests that a plan that encourages water <br /> 145 conservation is a better way to address the situation. <br /> 146 <br /> 147 City Engineer Wedel explained that in 2008 the Minnesota Department of Natural <br /> 148 Resources required a tiered rate structure in order for the City to keep its authority to <br /> 149 continue with new wells. The idea at that time wasn't to penalize families but to get at <br /> 150 the "big irrigators". There is benefit to the city in conservation because infrastructure <br /> 151 costs can be avoided (much infrastructure is built to serve peak times). Is the new tiered <br /> 152 rate structure working? He suggested that it is difficult to say since this has been a year <br /> 153 of lots of rain and the economy is down. He provided a chart indicating rate variations in <br /> 154 other cities—he doesn't think the City is out of line with other communities. Tim <br /> 155 Hillesheim, Utilities Supervisor for the City, explained that he doesn't think that families <br /> 156 are punished by the rates because 95% of the city's residential water users consume <br /> 157 30,000 or less (remaining in the lower rate). He added that the city has not been able to <br /> 158 see the result of the rate change because the past two summers have been wet. Mr. <br /> '"-- 159 Wedel remarked that the city could certainly review the rate structure in 2012 if that's the <br /> 160 council's desire. Public Service Director DeGardner distributed additional information <br /> 161 indicating that over 99% of Lino Lakes' families fall within the first two tiers (lowest) of <br /> 162 the rate structure in the winter and that 82% of Lino Lakes families fall within the first <br /> 163 two tiers in the summer. The city is doing what it can to keep from having to add more <br /> 164 very expensive infrastructure that will in fact raise rates. <br /> 165 <br /> 166 The mayor thanked staff for the discussion. He'd like to take a look at the rate structure <br /> 167 again in 2012 to ensure fairness. <br /> 168 <br /> 169 5. Comprehensive Plan Update—Community Development Director Grochala <br /> 170 recalled that in May of 2011 the council gave preliminary approval to the 2030 <br /> 171 Comprehensive Plan and it was approved by the Metropolitan Council with authorization <br /> 172 to put the Plan into effect. At this point it is back to the council for final Plan approval. <br /> 173 He has attempted, in his staff report, to identify the major changes to the Plan over the <br /> 174 past few years, including decreasing the amount of units forecast in the next twenty years, <br /> 175 reduction of the affordable housing goal, and modifications to the utility staging plan by <br /> 176 dividing the staging areas into five year phases. In addition the council modified the Plan <br /> 177 to reintroduce an annual average new housing growth benchmark, limit city financial <br /> 178 assistance to meet regional housing goals, modify residential development densities and <br /> 179 reduce net residential density proposed. When the Plan is approved as final by the <br /> 180 council, staff will begin the process of updating the city's official controls such as the <br /> 4 <br />