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Regular City Council Meeting Monday,February 11,2013 Page 29 wear out pipes faster to use more water, and that there was no more wear and tear from one to the other such as streets and roads; and therefore it didn't make sense to him to shift those infrastructure costs from base rates to usage fees, or to make them part of the tax levy. Mayor Roe suggested that the City of Roseville's mod- el may become the model for other cities in the future. City Manager Malinen, from a CIP perspective, noted that were zero dollars in the Water Fund due to the result of past reliance on variable usage to generate mon- ies; and when consumption went down and the City didn't get the money it ex- pected, but still had repairs and maintenance of the system, the Fund couldn't ac- commodate it. City Manager Malinen noted that, with the base rate as it now is, those fixed costs area addressed annually and was making the Fund stable. City Manager Malinen suggested that the current plan not be undone until there was some history to determine if it was working as indicated by the CIP Task Force. Councilmember McGehee agreed that the system had been mismanaged for thirty (30) years. Regarding the automatic read meters (ARM) and ability to view water usage at any time, Councilmember McGehee opined that there was no need to de- fer installation of those new meters; and suggested borrowing internally from the Storm Water Fund Reserve to have those automatic meters installed throughout the city immediately rather than systematically installing them in phases over the next four(4) years. City Manager Malinen advised that if that schedule was accelerated, it may need to be contracted out; and asked that the City Council consult with Public Works Director Duane Schwartz about related issues in expediting that installation. Public Works Director Duane Schwartz advised that of the $1.6 million projected for this installation, approximately $300,000 would be for contractual help to fin- ish the program over that period. Finance Director Miller added that if the expedited installation was done, it did not mean that the ARM system would be completed in-house at City Hall, since modification to billing customer accounts was required and the Finance Depart- ment was not equipped to process that now versus phased over four (4) years, re- quiring additional money for overtime to facilitate that additional workload. With Mr. Schwartz advising that the current phased-in project was for 2,000 in- stallations annually, Mr. Miller advised hat to accelerate that to 8,000 installations in one year, would require significant overtime to accomplish, and require his re- working of the Finance Department Work Plan. Mayor Roe noted that there would also be the additional interest for any internal loan.