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Home My WebLink About2001-005 Council Resolution• • Council Member (? introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 01-05 RESOLUTION DETERMINING THE SANITARY SEWER USER CHARGES FOR 2001 - 2003 WHEREAS: The Lino Lakes city code, Section 402, Subdivision 402.14 previously established sewer user rates and, WHEREAS: the Lino Lakes city code Section 402, Subdivision 402.14 now requires the City Council to determine by resolution the sewer user rates. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Effective March 26, 2001, the following sewer rate will be effective: $50.00 per quarter per REU* + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) 2. Effective January 1, 2002, the following sewer rate will be effective: $51.00 per quarter per REU* + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) 3. Effective January 1, 2003, the following sewer rate will be effective: $52.00 per quarter per REU* + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) * REU = a residential equivalent connection: 1. Residential — a single housing unit 2. Commercial - Industrial Institutional REU = per Met Council Service Availability Charge Procedures Manual Adopted by the Lino Lakes City Council this 26th day of March, 2001. qua- Ry -1 hel Gaustad, CMC City Clerk John J. B 26p1, eso Mayor The motio for adoption of the foregoing resolution was duly seconded by Council Member ' and upon vote being taken thereon, the following voted in favor thereof: (,,L The following voted against same: /UUIt--'� Whereupon said resolution was duly passed and adopted CERTIFICATION 411 1 hereby certify that the above is a correct copy of a resolution duly passed, adopted and approved by the City Council on March 26, 2001. Ry -C v el Gaustad, CMC City Clerk AGENDA ITEM 3A STAFF ORIGINATOR: John Powell, City Engineer COUNCIL MEETING DATE: March 26, 2001 TOPIC: Consideration of Resolution No. 01 -05 and 01 -19 Setting the Proposed Utility rates for 2001 -2003 VOTE REQUIRED: 3/5 Vote Required BACKGROUND: The City Charter states "The Council shall endeavor to make each municipal utility financially self- sustaining ". The City staff has prepared cost and revenue projections for the next three years and is prepared to recommend utility rates for 2001 through 2003. Sanitary Sewer The City's sewer rates are based on a quarterly charge per REU. An REU is a residential equivalent unit that represents the daily volume required by a typical residential connection. One house equals one REU. Commercial, industrial, and institutional use is converted to REU's based on the volume of flow they generate. The major expenses related to sewer charges include the cost of operating the system, Metropolitan Council charges, and depreciation. Depreciation relates to the cost of replacing the system after it has reached the end of its useful life. The rate computation has assumed a 220 unit increase in the number of connections on an annual basis. This includes connection by existing houses as well as new construction. However, if this increase does not occur our costs should also be proportionally lower. Our current sewer rate is $51.00 per quarter per REU with no usage charge. The proposed sewer rate increase is as follows: Effective March 26, 2001: $50.00 per quarter per REU + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) Effective January 1, 2002, $51.00 per quarter per REU + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) Effective January 1, 2003, $52.00 per quarter per REU + $1.00 per 1,000 gallons over 10,000 gallons (based on winter usage) Water The City's water rates are based on a quarterly charge per REU and a charge on water usage. The usage charge is based on 1,000 gallon units. The major expenses related to water charges include the cost of operating the system, bond expenses, and depreciation. The bond expenses would be offset by a transfer from the Area and Unit fund. The water rate computation also assumes a 220 unit increase in the number of connections on an annual basis. In order to satisfy the Department of Natural Resources concerns regarding water appropriation (pumping) the proposed rate structure increases the rate per gallon for heavier water use. This also keeps the base rate for the lower water users very close to the existing level. Our current water rate is $10.00 per quarter per REU and $1.63 per 1,000 gallons. The proposed water rate increase is as follows: Effective March 26, 2001, through December 31, 2003: Water Usage Rates: $1.77 per 1,000 gallons $2.07 per 1,000 gallons 0 to 30,000 gallons all water use above 30,000 gallons Water User Fee: $10.00 per quarter per REU The average household uses approximately 30,000 gallons of water per quarter. Based on this information, the average increase per household for sanitary sewer and water per quarter will be from $109.90 in 2000 to $123.10 in 2001. OPTIONS: 1. Adopt Resolution No. 01 -05 setting the sanitary sewer rates for 2001 -2003 and adopt Resolution No. 01 -19 setting the water rates for 2001 -2003. (Separate motion and vote for each resolution) 2. Adopt one resolution but not the other. 3. Refer to staff for further review. RECOMMENDATION: Option No. 1 - Staff recommends adopting both resolutions.