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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 <br /> <br />2 <br /> <br />indicated the information includes recommendations for the water and sewer utility <br />rate structure along with storm sewer information. <br /> <br />Mr. North reviewed the overall purpose of the utility fee structure and that it <br />needed to cover the expense of the water purchase from Roseville, operations from <br />day to day, payroll, capital improvements, etc. He further presented fee structure <br />information, capital outlays and expenditures with the Council. Mr. North <br />eXplained that TCAAP was not included within this summarization but would have <br />its own analysis completed by the end of December. <br /> <br />Mayor Harpstead stated the information presented shows operating revenues are <br />less than operating expenses at this time. <br /> <br />Mr. North reviewed three different rate structures with Council noting the first <br />was status quo. The second option was to include a base meter charge, as done with <br />the status quo with a quarterly meter fee along with three fee tiers based on usage. <br />He stated the third option would be to strictly pay for the gallons used by each <br />property. Mr. North indicated there are certain fixed costs that need to be covered <br />by revenues and that by adding the fixed meter charge; some of the risk can be <br />eliminated based on the weather cycles. <br /> <br />Mr. North reported the Council directed him to further investigate Option 2 in <br />greater detail with a base meter charge and three tiers of water fees. He noted he <br />was also to consider how this could be phased in to the current rate system to limit <br />the impact in 2009 and reduce the reliance on debt. Mr. North added that the <br />DNR has mandated that all communities in the metro area adopt conservation rate <br />structures by January 1, 2010. He indicated the conservation rate structures do <br />promote conservation and helps allocate the costs to the people using the system. <br />Mr. North further reviewed the rate structure numbers with the Council and asked <br />for comments and questions. <br /> <br />Councilmember Holden questioned what the median usage was for the City at this <br />time. <br /> <br />Elizabeth Diaz, Ehlers & Associates, indicated the median usage for households <br />was 20,000 gallons per quarter or 80,000 gallons per year. <br /> <br />Discussion ensued regarding the suggested water rate structure and how the fees <br />would be assessed in 2009. <br />