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Ayes: 5 <br /> Nays: 0 <br /> Motion carried. <br /> 4. Communication Items <br /> Assistant Public Works Director Freihammer provided additional comments and a <br /> brief review and update on projects and maintenance activities listed in the staff <br /> report dated October 25, 2016. <br /> Discussion included projected date for presentation of the latest solar installation <br /> update to the City Council; and preparation by the Public Works crew of snow <br /> vehicles and personnel training on that equipment in the next few weeks. <br /> 5. Proposed 2017 Utility Rates <br /> Finance Director Chris Miller presented the proposed 2017 utility rates, to be <br /> presented to the City Council in November for their consideration and approval. <br /> Mr. Miller noted that utility funds are considered "Enterprise Funds" and therefore <br /> restricted to funding those respective utilities. Mr. Miller advised that utility rates <br /> are reviewed annually and set to sustain the operations and capital needs of each. <br /> Finance Director Miller outlined staff recommendations for those 2017 rates in a <br /> memorandum dated October 15, 2016 entitled "2017 Utility Rate Review & <br /> Recommendation (Attachment A); and sought feedback from the PWETC. <br /> Chair Cihacek noted the City of Roseville differed compared to the practices of <br /> most other communities in that its base rates for water and sewer were the only <br /> funding source used, with no assessments to property owners to maintain that <br /> infrastructure. <br /> Member Lenz clarified that meant that the city's rates were not the same as actual <br /> costs, with other cities having similar costs, but recovering them through different <br /> means. <br /> Finance Director Miller concurred; noting that all metropolitan cities pay the same <br /> amount to the Metropolitan Council for sanitary sewer services annually on an <br /> equitable basis; with water usage based on the cost of purchasing wholesale water <br /> projected by the St. Paul Regional Water System (SPRWS) for the upcoming year. <br /> Mr. Miller noted base fees covered fixed costs while usage fees covered variable <br /> costs. The definitions of those costs were detailed in Mr. Miller's operational <br /> review, as well as other determining factors including capital replacement needs <br /> and customer counts, consumptions patterns, and rate structures. Mr. Miller also <br /> noted the city was subject to the rate increases applied by the Metropolitan Council <br /> and SPRWS with limited negotiations available for the city to impact those annual <br /> percentage changes. <br /> Page 2 of 20 <br />