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LAKE ELMO CITY COUNCIL MINUTES August 9, 2011 5 Hotel/Motel Water Rates – Discussion & Proposed Ordinance No. 08-051 The City Council received an update on efforts to address issues related to water service to the Wildwood Lodge and discuss Staff’s evaluation of proposed alternatives to the City’s commercial water rate structure to potentially address identified concerns with respect to hotel/motel water users. On July 19th, 2011, the City Council discussed possible alternative domestic water rates for commercial hotel/motel customers. The Council also reviewed past considerations relating to infrastructure integrity and billing practices. This item was directed by Council to be placed on this meeting agenda. Finance Director Bouthilet reviewed the impact of Options D1 and D2, modified Commercial Water Rate Structure. Cathy Bendel, C&J Consulting reviewed the water utility analysis 2009-2010. Per Council Member Park’s request, C&J Consulting provided for Council consideration the following modified commercial water rate structure, which Moe French, representative of Heart of America supported: Option D2 Cost Per Gallons Per Quarter 1,000 gallons 0-15,000 $3.11 15,001 – 30,000 $3.11 30,001 – 50,000 $3.26 50,001 – 80,000 $4.00 80,001 – 150,000 $4.00 150,001 – 200,000 $4.00 Over 200,000 $4.00 (Quarterly domestic, non-irrigation usage only) MOTION: Council Member Park moved to approve Ordinance No. 08-051, adopting Option D2, A modified Commercial Water Rate Structure for Hotel/Motels. Council Member Smith seconded the motion. The motion passed 5-0. Council Member Smith thought it was only fair to go back to January 2010 because the City and Mo French, WWL have been trying to work on this, but was placed on the back burner for two years. MOTION: Council Member Smith moved to adopt Scenario D-2 @$4.00 Credit due through Q2-11, 2010 ($10,901.54) and 2011 ($5,746.66) for a total of $16,648.19. Council Member Pearson seconded the motion. The motion passed 5-0.