2015-10-27_PWETC_Minutes - Laserfiche WebLink

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Chair Stenlund asked staff how they adjusted numbers to reflect resale market and exporting impacts. Mr. Miller responded that he didn't and when forecasting revenue sharing, they based it on trending over the last 12 months or 3 quarters as the assumption moving forward and adjusting rates accordingly. Due to those potential fluctuations, Mr. Miller reported that this fund retained a sufficient cash reserve level to serve as a buoy. For general information purposes, the remainder of Mr. Miller's report provided comparison rates from 2015 to those projected for 2016 for various types of housing units and/or meter sizes in the community and by utility as applicable. At the request of Member Seigler, Mr. Miller clarified that the City of Roseville did not profit from the Metropolitan Council's trunk sewer system running through Roseville as it went into the Pig's Eye Plant as St. Paul's main plant, without any cash benefit to the City of Roseville or its residents. Member Wozniak asked if any thought had been given to the water rate structure encouraging conservation and discouraging waste. Mr. Miller reported that there was nothing outside water rates themselves to incentivize behavior, which would be shown in the next section of his report's data analysis. Mr. Miller opined that the ability to change consumer behavior had nuances to it, and he wasn't sure anything could be accomplished through changes in the rate structure. Mr. Miller noted that similar discussions had been held with the City Council over the last several years, and while the current system may not be the best, obtaining any dramatic change may be equally difficult. Compared to a lot of other metropolitan suburbs, Mr. Miller reported that for the majority of Roseville residents, their water rates are on the conservative side. For newer members of the PWETC, Chair Stenlund reported that the Commission had explored multi -tiered rates and tried them in the past, but based on the community's demographics, the concept never got too far. Chair Stenlund stated he was willing to revisit it, but historically tier rates didn't impact water consumption to any significant degree. Mr. Miller noted on page 6 of his staff report, he had included a graph showing citywide water usage by gallon from 2007 through 2014, with that aggregate data indicating a reduction in citywide consumption over those last eight years with an overall reduction of 21% since 2007. Mr. Miller further reviewed aggregate water usage in single-family homes during wintertime (November through March) as well as summertime (April through September) with virtually no change seen over those last eight periods, or seven years. Mr. Miller opined that on the surface this suggested to him that rates didn't influence customer usage habits or consumption. Mr. Miller suggested this may prompt a philosophical or policy discussion as to Page 7 of 18