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ARDEN HILLS CITY COUNCIL WORK SESSION—FEBRUARY 27, 2012 5 <br /> Councilmember Werner questioned what demographic or water usage client was generating the <br /> most complaints. <br /> Director of Finance and Administrative Services Iverson stated the majority of the complaints <br /> are received from those using less than 10,000 gallons. <br /> Mayor Grant agreed with Councilmember Holmes and felt the 0-10,000 gallon usage rate should <br /> be reduced further. <br /> Councilmember Werner suggested the City address the complaint calls from those that do not <br /> use any water in the winter months as this was the main concern at this time. He saw the problem <br /> being on the users within the 0-5,000 gallons during the winter months. <br /> Councilmember Holden stated she was not interested in changing the entire rate structure for the <br /> snowbirds. Her goal would be to complete a rate study in 2013 and keep the current rates. <br /> Mayor Grant asked if the City had the capability to complete a rate study. <br /> Director of Finance and Administrative Services Iverson stated she had a model from Ehlers to <br /> complete a rate study however this was incredibly labor intensive. <br /> Mayor Grant questioned if the rate structure was limited to three tiers. <br /> Director of Finance and Administrative Services Iverson indicated she could establish as many <br /> tiers as the Council requested. She noted each tier required another change to the rate structure. <br /> Councilmember Holden questioned if there should be a 3,000 gallon minimum within the rate <br /> structure. <br /> Councilmember Holmes stated she was not saying there should be a minimum. However, this <br /> would assist with the lower usage residents to cover the overall expenses. <br /> Director of Finance and Administrative Services Iverson explained that an additional tier <br /> within the rate structure may assist in covering expenses. <br /> Mayor Grant proposed there be a 5,000 gallon minimum so long as the residents were not paying <br /> more for each bill than the 10,000 gallon users. Each gallon after the 5,000 would be paid on a <br /> per gallon basis. <br /> Councilmember Holmes was not in favor with this recommendation. She felt the residents <br /> should be paying only for what was used and that the fixed costs should be reevaluated. <br /> Mayor Grant stated another option would be to allow the fixed costs to remain in place, and have <br /> each gallon charged on a per gallon basis. <br />