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November 22, 2019 <br />Honorable Mayor and City Council <br />1880 Main Street <br />Centerville, MN 55038 <br />Dear Honorable Mayor and City Council: <br />Previously, staff presented proposed language for the modification of our fee schedule to <br />add a Fire Hose Connection fee and change the water base rate policy to include the <br />multiplication of the base rate by the number of Residential Equivalency Units (REUs) <br />for commercial accounts. The Council asked for additional information on how the base <br />rate multiplier change would affect larger institutions and businesses. There are several <br />options, if the Council chooses to implement this change. <br />As we examine options, it is important to note that the goal of this change is not <br />necessarily to increase revenues, but rather, to make the system fairer and more closely <br />aligned with how sewer service is billed. <br /> <br />In the two scenarios which lower the base rate, we are suggesting that the residential and <br />commercial base rates both be lowered to the same rate. <br /> <br />Sincerely, <br />Mark R. Statz, PE <br />City Administrator/City Engineer <br />Attachments: Options 1-4 Details <br />83 <br /> <br />