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Regular City Council Meeting Monday,December 10, 2012 Page 15 Finance Director Miller noted that action could be deferred until January of 2013, and still take effect in 2013,based on the quarterly billing cycle for utility billing. Mr. Miller sought to clarify residential and commercial rates (page 12 of the RCA, Schedule A), noting that the residential rate currently used represented a direct cost of passing through City costs to customers from the Saint Paul Re- gional Water Authority, but that it did not include any fixed or overhead costs, as all those fixed costs were included in the base rate with the exception of pur- chasing the water itself. Mr. Miller advised that those were considered fixed costs regardless of how much water was sold; with staff having previously aligned all fixed costs with revenue sources in the base fee as enacted in 2009, excluding variables for water usage fees. McGehee moved to remove and defer the water utility portion of draft resolu- tion for 2013 utility rates for action by a future City Council in 2013; and to re- move the recycling fee to consider reduced rates; and asking that staff return to the City Council with a proposed water rate structure based on further research and requirements of other regulatory agencies. Mayor Roe sought to clarify whether the intent of Councilmember McGehee's motion was to approve 2013 utility rates with the exception of water rates, to ta- ble the water rates only, or to table 2013 utility rates with the exception of recy- cling and move other recommended rate revisions forward. Mayor Roe noted that, at this time,no action had been taken on any utility rates with the exception of recycling rate reductions. Mayor Roe ruled the motion failed for lack of a second. Johnson moved, Pust seconded, to strike 2013 recommended water usage util- ity rates from this action; and with that exception to adopt Resolution No. 11036 entitled, "Resolution Establishing the 2013 Utility Rates," in accord- ance with Schedule A (page 12) attached to the resolution;and to forward any action on water rates to the new City Council taking office in January of 2013. Mayor Roe clarified that current water usage rates (page 12) would remain in effect as a result of this motion. Finance Director Miller requested more clear direction on what staff was being requested to provide further research. Mayor Roe advised that 2012 rates would remain in effect; and whatever rec- ommendation staff provided on water rates would be heard at a later date by a future City Council,