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Bonestroo. Rosen. Anderlik and Associates. Inc. is an Affirmative Action /Equal Opportunity Employer <br /> B onestroo Principals: Otto G. Bonestroo, P.E. • Joseph C. Anderlik, P.E. • Marvin L. Sorvala, P.E. • <br /> [ Richard E. Turner, P.E. • Glenn R. Cook. PE. • Robert G. Schunicht. PE. • Jerry A. Bourdon, PE. • <br /> R osene Robert W Rosene. PE. and Susan M. Eberlin, C.F.A. Senior Consultants <br /> Associate Principals: Howard A. Sanford, PE. • Keith A. Gordon. PE. • Robert R. Pfefferle, P.E. • <br /> • <br /> Anderlik & Richard W. Foster, P.E. • David 0. Losko[a. RE. • Robert C. Russek. A.I.A. • Mark A. Hanson, PE <br /> Michael T. Rautmann, PE. • Ted K.Field, P.E. • Kenneth P Anderson, PE. • Mark R. Rolfe. PE. • <br /> A ssociates Sidney Rick so Williamson, PE, L.S. • Robert F. Kotsmith • Agnes M. Ring • Michael R Rau. P.E. • <br /> Si <br /> Engineers &Architects Offices: St. Paul. Rochester, Willmar and St. Cloud, MN • Milwaukee. WI <br /> Website: www.bonestroo.com <br /> March 17, 1999 <br /> Mr. Jim March <br /> City of Centerville <br /> 1880 Main Street <br /> Centerville, MN 55038 <br /> Re: Water and Sewer Rate Study- Phase One Results <br /> BRA File No. 616-99 -102 <br /> Dear Mr. March: <br /> This Phase One study evaluated current utility rates for Sanitary Sewer,- Water and Storm Sewer <br /> for the City of Centerville. We have prepared specific recommendations for a Phase Two study to <br /> address some concerns and limitations with the current utility rates. This report will discuss <br /> specific concems with each of the current utility rates for Sanitary Sewers, Water and Storm <br /> Sewers. <br /> Current Utility Rates <br /> The current system gathers revenue with a combination of service charges from existing <br /> customers and connection fees from new customers. The current system is summarized as <br /> follows: <br /> • City Sanitary Sewer Rates: <br /> Quarterly Service Charges - S 39/ residential unit (senior discount $ 33 /unit) <br /> Connection Fee - $ 1,750/ residential equivalent unit • <br /> City Water Rates: <br /> Quarterly Service Charges - $ 15/ unit minimum - $ 1.50/ thousand gallons of metered water <br /> Connection Fee - $ 1,300 /residential unit, $ 3,300/buildable commercial acre <br /> City Storm Water Rates: <br /> Annual Service Charges - $ 8/ residential unit and $ 24/ commercial unit <br /> New Development - $ 0.01546 per square foot of platted area <br /> New Construction - $ 200/ residential unit and $ 0.05/ square foot for commercial building <br /> Financial Priorities for Infrastructure Rates and Fees <br /> We recommend that the utility rates meet these three financial priorities. <br /> 1. Meet Operation and Maintenance expenses with current quarterly service charges. <br /> • <br /> 2. Meet Capital needs with connection charges and hook -up fees. Provide sufficient Capital <br /> Reserve for maintaining positive cash flow in the infrastructure accounts. <br /> 1 <br /> • 2335 West Highway 36 • St. Paul, MN 55113 • 651 - 636 -4600 • Fax: 651-636 -1311 <br />