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ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 21, 2011 4 Mr. See explained that the intramural and club teams aren't allowed to use the Bethel fields because Bethel administration is concerned that would appear to be favoring one group of students over another and there would not be sufficient field time to support the intramural as well as the club teams. Council consensus was to direct staff to place the 2012 fee schedule on the Council's next regular meeting agenda. H. Water Meter Minimum Discussion Director of Finance and Administrative Services Sue Iverson stated this is in regard to the Council's previous direction to reduce the minimum from 10,000 to 5,000 gallons and keep the water meter charge the same. She determined the best way to maintain the water conservation rate was to increase the over 35,000 gallon fee by 40%. Lowering the minimum to 5,000 gallons increases everyone else's water bill $16.40 to cover that 5,000 gallon difference. After speaking with Councilmember Holden today, she prepared a different rate sheet and presented it to Council. This rate sheet demonstrates the difference between a 5,000 gallon user, a 10,000 gallon user, a 16,000 gallon user, a 25,000 gallon user and a 50,000 gallon user. Councilmember Holden explained that she would not approve dropping the minimum down to 5,000 gallons. She suggested that the City use the same rate system it has now, but if someone is using less than 5,000 gallons that they be given a credit. Councilmember Holmes stated that she would need more time to study the rates presented. She then asked why we can't simply charge everyone a fixed fee for their actual usage without a minimum. Director Iverson stated that could be done but it would be more complex and take time to figure out. Mayor Grant stated there were a number of people who complained about the water rate structure. Director Iverson pointed out that there are a lot of snowbirds in Arden Hills and the fixed cost covers the expense to be connected to City water. She then recommended that the Council adopt the water rates as presented and she will then revise the rate structure within the upcoming year, possibly by June. Councilmember Holden stated that she doesn't want to wait six months to adjust the schedule and questioned if the Council could at least add a credit for those who use under 5,000 gallons. She stated that she would like to see something done by March 1, 2012. Director Iverson explained that in order to give a credit, the utility billing clerk would have to manually go into those accounts which would delay the billing cycle.