05/27/2008 Council Packet - Laserfiche WebLink

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• • AGENDA ITEM 2A STAFF ORIGINATOR Al Rolek MEETING DATE May 27, 2008 TOPIC Accept Utility Rate Study from Springsted, Inc. VOTE REQUIRED Simple Majority In June, 2007, the City Council authorized Springsted, Inc., to perform a utility rate study for the City. This study was prepared and coordinated with the Water Management and Conservation Plan completed by the City's engineers, T.K.D.A. The role of utility rates in promoting conservation of water resources through the management of water usage for lawn irrigation is an integral component of the Water Management and Conservation Plan approved by the City Council. The Study was originally presented to the City Council at the October, 2007 work session. Following the presentation of the draft Study, Springsted, Inc., incorporated comments received from the City Council and Staff into a revised rate structure recommendation that was presented to the City Council in April. Comments received during that meeting were incorporated into an amendment to the Utility Rate Study Report. The amendment is attached for your review. The ultimate recommendation of the amended Study is to implement a 5 -tier water rate structure for residential customers and a commercial rate structure for commercial/industrial users. The tiered rates are structured to promote water conservation through discouraging high seasonal water usage without penalizing for normal domestic water usage. No adjustment to sewer rates is recommended until 2013. No immediate action is being requested at this time that affects utility rates. It is staffs plan to prepare public information materials to communicate the rate recommendations made by the Study to utility customers and to hold a public hearing on recommended rates in the August/September time frame. Any action to adjust rates following the public hearing is anticipated to be implemented in January, 2009. Patty Kettles of Springsted, Inc. will be at the meeting to present their final report. Staff is recommending that the Final Utility Rate Study, as amended, be accepted from Springsted, inc. 1. Accept the Final Utility Rate Study from Springsted, Inc. 2. Refer to Staff for further review. 3. Deny. Tfir Option 1 A -3 —30—