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Department Approval <br />�. �: � <br />Item Description <br />�� <br />.r- <br />REQUEST FOR COUNCIL ACTION <br />Date: 11 /3 0/15 <br />Item No.: ] 3.b <br />City Manager Approval <br />Consider Adopting the 2016 Utility Rate Adjustments <br />BACKGROUND <br />� Over the past several months, City Staff has been reviewing the City's utilities operations to determine <br />whether customer rate adjustments are necessary for 2016. The analysis included a review of the City's <br />water, sanitary sewer, storm drainage, and curbside recycling operations. <br />The information presented below includes an analysis of these operations, some historical water usage <br />information, and a series of rate comparisons with peer communities. Each of these are presented in <br />separate sections. <br />Operational Review <br />Staff's analysis of its utility operations included a review of the following: <br />0 Fixed costs including personnel, supplies and maintenance, and other costs that are generally <br />independent of the amount of water purchased or wastewater that is generated. <br />0 Tlariable costs including the purchase of water from the City of St. Paul, water treatment costs <br />paid to the Metropolitan Council, and recycling contractor costs paid to Eureka. <br />0 Capital replacement costs. <br />0 Customer counts and consumption patterns, rate structure, and rates. <br />Based on an analysis of these costs and customer consumption patterns, Staff is recommending a <br />number of fee adjustments for 2016. The need for these adjustments are presented in greater detail in <br />subsequent sections. <br />Based on Staff's recommendation, the estimated quarterly impact on a typical single-family home is <br />shown in the following table. <br />Page 1 of 14 <br />