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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - December 17, 2007 <br /> <br />3 <br /> <br />Mayor Harpstead stated he would like to know if Administrative fines would open the <br />City up to legal liability. Secondly, he suggested citizens be part of a panel to discuss the <br />fines and enforcement for the administrative fines. <br /> <br />C. Discussion of Utili tv Rates and Utilitv Rate Studv <br /> <br />Finance Director Iverson reported on the utility rates and utility rate study. She <br />referenced the memos provided to Council on policy issues that need discussion. She <br />provided information on the senior citizen's rates. She explained the deficits in water, <br />sewer, and storm water funds. She stated a great deal of time has been spent researching <br />the accounts with Public Works on how billing is done. She explained that the largest <br />discrepancy is in the surface water management fund and how this will be resolved. <br /> <br />Finance Director Iverson requested Council provide feedback and direction on policy <br />considerations for the City's water and sewer enterprise funds. <br /> <br />Mayor Harpstead inquired as to whether retroactive bills would be sent. <br /> <br />Finance Director Iverson replied that these changes will occur going forward; the City <br />will not bill retroactively as she was not sure they could legally do this. <br /> <br />Mr. Mark Ruff, Ehlers & Associates, shared insight on how cities bill sewer and water <br />utilities relative to residential and commercial. He stated the question for Council is <br />whether it wants to consider tiered rates and conservation issues. He stated another <br />question is how enterprise funds and general funds would be managed. <br /> <br />Discussion ensued on each bullet point presented in the Ehlers memo. <br /> <br />Consensus reached by Council was to direct staff to explore a residential tiered rate and a <br />commercial versus non-profit tiered rate based upon usage for Council consideration. <br /> <br />Councilmember Holden questioned whether TCAAP would fund a portion of the rate <br />study. <br /> <br />City Administrator Wolfe replied a portion would be eligible to charge back to TCAAP. <br /> <br />Finance Director Iverson stated the rate study cost is budgeted for. Mark Ruff stated that <br />Ehlers will prepare a quote for the study and identify which portion could be allocated to <br />TCAAP . <br /> <br />D. CIP/PMP Discussion <br /> <br />City Administrator Wolfe recommended that a CIP/PMP strategy or plan be developed, <br />drafted, approved and consistently followed moving forward. <br />