11/03/2008 Council Packet - Laserfiche WebLink

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• • WS -6 WORK SESSION MEMORANDUM To: Mayor and City Council From: Al Rolek Date: November 3, 2008 Re: Utility Rates — Set Public Hearing cc: In June, 2007 the City Council authorized the preparation of a utility rate study to be done in coordination with the Water Management and Conservation Plan being prepared by the City engineers. The results of the study, which were originally presented to Council in October, 2007, recommended a conservation rate schedule to encourage citizens and businesses to conserve this vital natural resource. State law also requires that water conservation measures, including a conservation rate schedule, be implemented and be in compliance with state regulations before requesting approval to construct new wells or increase pumping volumes. Several questions were raised by Council and staff relative to relative to the rate structure. Our consultants then reviewed and revised their recommendations and presented them in a final report to the Council in April, 2008. The City Council formally accepted the report in May, 2008 (copy attached). Staff is now beginning the process to approve the new water rate schedule. An information brochure is planned to inform water customers of the new schedule, how it would impact the average customer, and a public hearing will be scheduled to take public comment, after which it is intended that the new schedule would be approved. Staff would recommend implementing the schedule on January 1, 2009. Staff is requesting Council direction relative to moving forward with the recommended schedule. Due to some opposition on the Council to the suggested rate schedule, further clarification is needed. If Council consensus is to move forward with the recommended schedule, the materials would be mailed in November with a public hearing at the 2nd meeting in November. If further revisions are required, the revisions would be made in November /December and the informational materials would be mailed in early January with a late January hearing. Staff is looking forward to a resolution to this question. Page 1