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Regular City Council Meeting Monday,December 10, 2012 Page 14 Mr. Miller noted staff's revisions related to City Council discussion for reduc- tion of the recycling rate from the $6.20 recommended by staff to $6.00 per unit per month as directed by several City Council members. Mr. Miller addressed water conservation rates, and recommendations of the PWETC; and suggested that the City Council affirm the status quo for the water rate structure for 2013 and look at the broader implications of reverting back to a single consumption rate in 2014, contingent with regulations of various State regulatory agencies that have oversight of municipal water service providers. Mr. Miller reviewed recent legislative changes that he and Public Works Direc- tor Duane Schwartz had discussed that had repealed previous requirements en- acted related to a conservation rate structure. Mr. Miller advised that the only requirement now was that the City could demonstrate a decline in water usage for other reasons, which the City of Roseville could demonstrate. In order for staff to obtain additional research related to a uniform system versus a three (3) tiered system, Mr. Miller reiterated staff's recommendation that it may be pru- dent to affirm the status quo of the City's rate structure for 2013 with the two (2)tiered system. Councilmember McGehee expressed her interest in Councilmember Johnson's proposal at the December 3, 2012 meeting to revert to one (1) flat water rate re- gardless of usage; and opined that the City use a direct pass through rate for cit- izens to charge them only what the City was charged, including staff time, meter costs, mailing costs for utility bills, and other operational costs. Councilmem- ber McGehee opined that it didn't seem like a reasonable business model to do otherwise. Councilmember McGehee suggested using Councilmember John- son's proposal as a basis for future discussions on using a flat rate adjusted to incorporate actual costs to the end user. As pointed out by Councilmember Johnson,just because a household uses less, it shouldn't be cheaper for anyone; and everyone — whether residential or commercial customers — should pay for operational costs. Councilmember McGehee further opined that the water rates be tabled to allow staff time for further research, as she saw no pressing need to act at this time based on the additional information brought forward by staff for tonight' s meeting. Councilmember Willmus advised that he too would like to further explore a flat rate; however, he suggested that other items beyond the water rate should be en- acted tonight rather than tabling the issue in its entirety. Councilmember Johnson suggested that the water component be removed from the fee structure, and defer action on that specific area for the new City Council in January of 2013.