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Councilmember Johnson suggested that the water component be removed <br /> from the fee structure, and defer action on that specific area for the new City <br /> Council in January of 2013. <br /> Finance Director Miller noted that action could be deferred until January of <br /> 2013, and still take effect in 2013, based on the quarterly billing cycle for <br /> utility billing. <br /> Mr. Miller sought to clarify residential and commercial rates (page 12 of the <br /> RCA, Schedule A), noting that the residential rate currently used represented <br /> a direct cost of passing through City costs to customers from the Saint Paul <br /> Regional Water Authority, but that it did not include any fixed or overhead <br /> costs, as all those fixed costs were included in the base rate with the <br /> exception of purchasing the water itself. Mr. Miller advised that those were <br /> considered fixed costs regardless of how much water was sold; with staff <br /> having previously aligned all fixed costs with revenue sources in the base fee <br /> as enacted in 2009, excluding variables for water usage fees. <br /> McGehee moved to remove and defer the water utility portion of draft <br /> resolution for 2013 utility rates for action by a future City Council in 2013; <br /> and to remove the recycling fee to consider reduced rates; and asking that <br /> staff return to the City Council with a proposed water rate structure based on <br /> further research and requirements of other regulatory agencies. <br /> Mayor Roe sought to clarify whether the intent of Councilmember McGehee's <br /> motion was to approve 2013 utility rates with the exception of water rates, to <br /> table the water rates only, or to table 2013 utility rates with the exception of <br /> recycling and move other recommended rate revisions forward. Mayor Roe <br /> noted that, at this time, no action had been taken on any utility rates with the <br /> exception of recycling rate reductions. <br /> Mayor Roe ruled the motion failed for lack of a second. <br /> Johnson moved, Pust seconded, to strike 2013 recommended water <br /> usage utility rates from this action; and with that exception to adopt <br /> Resolution No. 11036 entitled,"Resolution Establishing the 2013 <br /> Utility Rates,"in accordance with Schedule A (page 12) attached to <br /> the resolution; and to forward any action on water rates to the new <br /> City Council taking office in January of 2013. <br /> Mayor Roe clarified that current water usage rates (page 12) would remain in <br /> effect as a result of this motion. <br /> Finance Director Miller requested more clear direction on what staff was being <br /> requested to provide further research. <br /> Mayor Roe advised that 2012 rates would remain in effect; and whatever <br /> recommendation staff provided on water rates would be heard at a later date <br /> by a future City Council, <br /> 8 <br />