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• <br />• <br />• <br />AGENDA ITEM 2A <br />STAFF ORIGINATOR: AI Rolek <br />MEETING DATE: December 8, 2008 <br />TOPIC: Consider 2 "d Reading of Ordinance No. 16 -08 Setting Water <br />Utility Rates & Amending 2009 Fee Schedule <br />VOTE REQUIRED: Simple Majority <br />BACKGROUND <br />At the November 24, 2008 City Council meeting a public hearing was held to receive <br />public comment on the proposed adjustment in water utility rates. Following the public <br />hearing the City Council approved the 1st reading of Ordinance No. 16 -08. A 2nd reading <br />of the ordinance is scheduled on the agenda for this evening. <br />Water consumption during the winter months is a good indication of domestic water <br />usage. As reported at the public hearing, 98.7% of residents connected to the city <br />water system use less than 40,000 gallons per quarter during the winter months. The <br />proposed rates would have a minimal impact on these users. Consumption in the <br />summer months can average four times, and as high as seven times, the winter <br />average primarily due to discretionary usage, i.e. lawn irrigation. High water use <br />compromises the city's ability to provide adequate and reliable water supplies, water <br />pressure, storage capacity, and fire protection reserves. <br />Minnesota Statutes mandate that all public water suppliers serving more than 1,000 <br />people in the metropolitan area have a conservation rate structure in place by January 1, <br />2010. Conservation measures must be in place before requesting approval to construct a <br />public water supply well or requesting an increase in the authorized volume of <br />appropriation. The proposed Water Utility Rate Schedule is another measure to bring the <br />city closer to the long term goal of decreasing annual average residential water usage to <br />75 gallons per person per day (as requir uti by lire DNR) while helping to control system <br />operating and capital costs. <br />With this in mind, staff is recommending that the City Council approve the 2nd reading of <br />Ordinance 16 -08. If approved, upon publication of the ordinance, the adopted rates <br />will be implemented in January, 2009. <br />OPTIONS <br />1. Approve the 2 "d Reading of Ordinance 16 -08. <br />2. Refer to Staff for further review. <br />RECOMMENDATION <br />Option 1 <br />