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- BOARD OF WATER COMMISSIONERS <br />President: James Reiter 'dice President. Stephen Haselmann <br />Commissioners: Matt Anfang * Jerry Blakey * Robert cardinal Pat Harris t Richard vitelli <br />Mr. Deal Beets, City Manager <br />City of Roseville <br />60 Civic Center Drive <br />Roseville, Minnesota 55113 <br />Dear heal; <br />December 30, 2002 <br />RE: water Service Contract for Roseville <br />As Roseville is a very important customer to us, we have taken a considerable amount of <br />time to review and respond to your offer. . we have also reviewed a copy of your water study <br />sent to us by your Finance Director. The Board of water Commissioners' has also discussed this <br />at two meetings. <br />We found the water study to be very thorough} although we have some questions about <br />some points in both the letter and study that we would like to understand clearly before we send <br />a formal response to your offer. we want to be sure your compare son of the two offers from <br />saint Paul Regional Water Services is accurate to what was intended in our letter of offer and <br />zaft agreements. we want to be sure your decision and response is based on a full under- <br />standing of our intent. Our comments are as follows: <br />Our wholesale offer had no distribution, maintenance for distribution or <br />billing costs built into the number other than delivering the water to the <br />Dale Street Reservoir. Your letter infeiTed we rrdght have implied that <br />some of those costs were reflected in our wholesale number. <br />2) At a 70 percent wholesale rate, we believe the long -term rate of return to <br />be comparatively on the low side but we are open to discussion on this <br />issue. <br />3) On page 19 of your water study there is a sensitivity developed for energy <br />p`ices and chemical costs, but it is only used for the two options for Saint <br />Paul. we don't understand why that wouldn't also apply if Roseville had <br />its own plant and pumping station' Roseville would be sensitive to energy <br />and chemical costs as well. Saint Paul's vigorous time of day pumping <br />and volume of chemical purchases gives it an economy of scale advantage <br />that a smaller system would not have available to it. <br />SAINT PAUL REGioNAL WATER SERVICES <br />Bernie R. Bullert} General Manager <br />8 411, St E Saint Paul MN 55101-1007 * TTY; 651- 266 -6299 <br />Saint Paul Regional aie1- Senoices provides quality water set -vices to ilie fauowing cities: <br />Arden Hi lls*Falcon Heights}LauderdaleaLittle Canada *MaplewoodeMendota* endeta HeightsoRosevil le;Sai nt peal *wc t S t. l�anl <br />