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A wsa B�Assnc- Infrastructure ■ Engineering ■ Planning ■ Construction Memorandum To: Honorable Mayor, City Council, and Staff From: Todd E. Hubmer, WSB & Associates, Inc. Justin Messner, WSB & Associates, Inc. Date: July 27, 2009 Re: Proposed Tiered Water Rates Analysis City of St, Anthony WSB Project No. 1626 -43 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763 - 541 -4800 Fax: 763 -541 -1700 This memorandum is being prepared to address the analysis that was completed by staff on the proposed tier structure for the water utility rates. As you are aware, the MDNR has established that the City of St. Anthony and other Municipal Water Suppliers adopt and implement a tiered water structure aimed at encouraging the conservation of water. Based on the analysis, we agree with the tier structures for residential, multi - family, and commercial being proposed by staff. The tier structures take the following concerns into consideration: The recommendations of the MDNR for the proposed increments and number of tiers in the fee structure. 2. Sensitivity to the variation in family size and individuals occupying a home. This concern was issued by the City Council in the last work session. With the issue being: there is the potential for the tier structure to penalize large families just because of their size and the increased water usage (and fees) associated with more individuals living in one home. This penalty of increased water costs would occur without any opportunity for the family to reasonably conserve water to lower their position in the tier structure. 3. Some commercial and industrial users should not be punished just because the products they produce require large quantities of water. The rate structure should encourage water conservation, but not unduly harm the business climate of St. Anthony. Minneapolis ■St. Cloud Equal Opportunity Employer IC`OI G403N®tin� W fiVNFM01vKf AP- ]G9.dx