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170 Mr. Freihammer responded lift stations are more mechanical and have more finite <br />171 life and pipes have more flexibility with an average age of 75 years, give or take 25 <br />172 years. These are being replaced on a longer schedule than what was put in, and <br />173 pipe replacement is somewhat dependent on soils. With different technologies, such <br />174 as water main lining, different techniques can be done to spread out replacement <br />175 time. It will become spread out over time and be less volatile. <br />176 <br />177 Member Heimerl referred to the chart on page 26 of the meeting packet, and the <br />178 83.9 percent increase of supplies and materials from 2017 to 2018. He inquired if <br />179 in 2016 they had $160,000 in expenses but only budgeted half of it in 2017. He is <br />180 trying to figure out why there is such a significaAincrease and how to handle it in <br />181 the future. <br />182 <br />183 Mr. Freihammer responded it may be related to the way they previously coded <br />184 something that was then shifted to supplies and materials. It may also be related to <br />185 the water main breaks, but he will have to look further into it. <br />186 <br />187 Member Wozniak stated the average consumption rate of water is 14,000 gallons <br />188 per quarter and inquired why the average usage rate is based on 30,000 gallons per <br />189 quarter. <br />190 <br />191 The Commission pointed out this was previously discussed at the last PWETC <br />192 meeting, and Member Wozniak was not in attendance. <br />193 <br />194 Chair Cihacek responded the rates were set many years ago when water usage was <br />195 much higher. At the last meeting, the Commission recommended they look at a <br />196 tiered system that better reflects current usage rates. It is likely that residents are <br />197 averaging closer to 20,000 gallons than 14,000 gallons, but they are not even close <br />198 to 30,000 gallons. <br />199 <br />200 Mr. Freihammer suggested they also look at where the threshold is where residents <br />201 would get impacted by a change, and how many are currently over that threshold. <br />202 <br />203 Member Wozniak stated the City of Edina's rates are $2.13 up to 26,000 gallons. <br />204 Between 26,000 and 49,000 gallons, it increases by .70 cents. At 49,000 gallons, it <br />205 jumps to $4.42 per gallon. Roseville's current rates are regressive, they are <br />206 subsidizing large users and not encouraging conservation of water. He will not <br />207 supportthe rates as proposed. <br />208 <br />209 Member Seigler pointed out water usage is down. <br />210 <br />211 Member Wozniak responded the use of water has to be reflected in the volume used <br />212 and if a person uses more they should pay more. There should be some incentive to <br />213 encourage the use of less water. <br />214 <br />Page 5 of 14 <br />