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City Council Regular Meeting Minutes October 13, 2009 Page 4 1 savings that would be associated with using less water and dropping down a tier. He stated his 2 position that there is support for clean water and water conservation, which is shown by the tax 3 increase voted into effect a few years ago. 4 5 Mayor Faust thanked the public for the comments. He commented that the City has taken a 6 conservative, measured approach with this issue. They will be sensitive to benchmarking this in 7 the future. The ultimate goal is to conserve water. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Councilmember Roth suggested that in order to make more of an impact, Option 2 be amended with the following differential between tiers: 10% / 15% / 25%. Councilmember Gray noted approximately 50% of the households are in Tier I, and that there is no incentive for these individuals to reduce their water consumption. He stated his position that the focus should not be limited to the other 50% of users. Councilmember Stille indicated he would be supportive of the amendment proposed by Councilmember Roth. He pointed out that the rates will be revisited annually and can be adjusted in the future. He suggested publishing the citywide water consumption quarterly. Councilmember Thuesen stated his preference for Option 2, and indicated he would be agreeable of the amendment proposed by Councilmember Roth. In regard to the concern raised about Tier I by Councilmember Gray, there is likely some conservation occurring with this group simply because there is not a lot of use by this tier. He would not propose increasing this tier at this time, but it should likely be reviewed by future City Councils. Mayor Faust suggested implementing an additional tier by amending the tiers as follows: 0 — 7,500 Gallons Tier I 7,501 — 15,000 Gallons Tier II 15,001 — 22,500 Gallons Tier III 22,501 — 30,000 Gallons Tier IV Over 30,000 Gallons Tier V *Minimum Bill 7,500 Gallons Remain at $2.60 base rate Percentage split between tiers: 5% / 10% / 15% / 25% Council consensus was to direct staff to include the first reading of Ordinance 33.036 on the October 27, 2009 City Council meeting with the above rate structure as suggested by Mayor Faust. B. Update on Sewer Rates. City Manager Mornson reported that based on 2008 financial data, the City Auditor recommended a sewer rate increase. Operating revenues totaled $797,360 compared to rd