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REQUEST FOR COUNCIL ACTION <br /> Date: 12/08/14 <br /> Item No.: <br />12.c <br />Department Approval City Manager Approval <br />Item Description: Consider the 2015 Utility Rate Adjustments <br />B <br />ACKGROUND <br />1 <br />Over the past several months, City Staff has been reviewing the City’s utilities operations to determine <br />2 <br />whether customer rate adjustments are necessary for 2015. The analysis included a review of the City’s <br />3 <br />water, sanitary sewer, storm drainage, and curbside recycling operations. It also incorporates the <br />4 <br />recommendations provided by the Council-appointed Capital Improvement Plan (CIP) Subcommittee, <br />5 <br />and the Public Works, Environment, and Transportation Commission (PWET). <br />6 <br />7 <br />Staff’s analysis included a review of the following: <br />8 <br />9 <br />Fixed costs including personnel, supplies and maintenance, and depreciation. <br />10 <br />Variable costs including the purchase of water from the City of St. Paul, water treatment costs <br />11 <br />paid to the Metropolitan Council, and recycling contractor costs paid to Eureka. <br />12 <br />Capital replacement costs. <br />13 <br />Customer counts and consumption patterns, rate structure, and rates. <br />14 <br />15 <br />A financial overview of each operating division is included beginning on the next page. The estimated <br />16 <br />overall impact on a typical single-family home based on Staff’s Recommended 2015 Rates is shown in <br />17 <br />the following table. <br />18 <br />19 <br />Single Family Homes <br />Service20142015$ Increase% Increase <br />Water - base fee54.45 51.60 (2.85) <br />Water - usage fee39.60 40.50 0.90 <br />Sanitary Sewer - base fee37.35 35.40 (1.95) <br />Sanitary Sewer - usage fee24.00 24.72 0.72 <br />Storm Sewer11.70 11.70 - <br />Recycling5.00 5.50 0.50 <br />Total per Quarter172.10$ 169.42$ (2.68)$ -1.56% <br />Avg. Water consumption (1,000 gals.) 18 <br />Avg. Sewer consumption (1,000 gals.) 15 <br />20 <br />21 <br />As shown in the chart, for 2015 a typical single-family home will pay $169.42 per quarter, or $56.47 <br />22 <br />per month. This is a decrease of $0.89 per month from 2014. <br />23 <br />Page 1 of 11 <br /> <br />