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City Council Regular Meeting Minutes August 25, 2009 Page 4 1 Councilmember Roth questioned if a rate increase to .0036 rather than .0035 would be advised to 2 avoid the need for a readjustment in the next few years. City Manager Morrison indicated staff 3 will provide information on the .0035 rate in dollar figures, as well as other options. 4 5 Mayor Faust noted that in the past the City has attempted to make the sewer fund balance 6 without using it as a revenue source and/or anticipating and building up funds. A philosophical 7 discussion would be needed on any change in this practice. 9 Councilmember Roth requested that the next discussion on this topic includes a monthly or 10 quarterly sewer bill to provide context as to the sanitary sewer percentage of the budget. 11 12 Mayor Faust inquired about the required date for adoption of the tiered water rate structure. 13 Finance Director Larson indicated that the ordinance will need to be amended, which requires 14 three readings. The tiered water rate structure needs to be in place by January 1, 2010. There is a 15 little buffer in that the first quarter billing is not done until April, so the rate structure will need to 16 be completed by the end of this year or the very early part of next year. He advised that the rate 17 structure will be applied to all user groups, including residential, commercial, and multi - family 18 units. 19 20 Mayor Faust suggested requesting a one year extension on the adoption of the tiered rate 21 structure to allow for a period of experience for analysis of conservation that may be achieved at 22 the School District due to the recent renovations of major buildings, water reduction devices, and 23 a new building maintenance management team. He noted there should also be discussions about 24 the requirement to change the rate structure with the commercial users in the City, such as 25 Happy's Potato Chips, which is one of the largest consumers of water in the City. 26 27 City Manager Mornson indicated that this topic will be included in every City newsletter until 28 there is an adopted rate structure. The topic will come forward for further discussion by the City 29 Council at the last meeting in September or the first meeting in October. 30 31 Consensus of the City Council was to direct staff to request a one year extension on the required 32 adoption of the tiered water rate structure due to the changes discussed above at the School 33 District and the desire to hold discussions with the business community. The topic is to be 34 included on the September 29, 2009 scheduled joint meeting with the School District. Staff is to 35 inform Happy's Potato Chips ofthe State Statute requirements on the water rate structure. The 36 topic should come back before the City Council no later than the October 13, 2009 City Council 37 meeting. 38 39 VI. GENERAL BUSINESS OF COUNCIL. 40 41 None. 42 43 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. 44 45 City Manager Morrison reported on the following: 46