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79 <br />80 Chair Cihacek inquired why the break was at 30,000 gallons, if multifamily <br />81 properties were considered commercial or residential, and if there are any private <br />82 water systems in the City. <br />83 <br />84 Mr. Culver responded an average household is Roseville is using 16,000 gallons <br />85 per quarter and 30,000 is a level that has definitely exceeded normal usage. <br />86 Multifamily properties are considered nonresidential. <br />87 <br />88 Mr. Freihammer stated there are about a dozen residences still on a well. If their <br />89 well fails, they are required to connect to City water. <br />90 <br />91 Mr. Culver referred to the City's 2017 Utility Rate Analysis provided on page 26 <br />92 of the meeting packet. He pointed out the percentage differences between single - <br />93 family residential uses versus other uses. He stated if they wanted to reduce the <br />94 base rate by 10 percent, the revenue loss from single-family residential go from <br />95 $500,000 to $454,000. They would have to increase the other uses by 54 percent in <br />96 order to make up the revenue loss. <br />97 <br />98 Mr. Culver referred to page 27 of the meeting packet. He provided an example of <br />99 what would need to happen to maintain the revenue if the single-family base rate <br />100 was reduced to $35.00. If a business has a six-inch meter, the amount of water they <br />101 can get is much higher than what a five-eighths inch pipe can serving a single - <br />102 family home. That business currently pays $1,600 per quarter and this potential <br />103 change would increase it to $3,850 per quarter and $9,000 more annually just with <br />104 the base rate. Another option would be to increase water consumption fees, but that <br />105 does not provide the consistency in revenue that is needed for operations and capital <br />106 costs. Residents become more aware of their consumption and try to conserve water <br />107 in order to have a lower consumption charge. <br />108 <br />109 Mr. Culver stated residential water usage makes up about 50 percent of the total <br />110 water usage and nonresidential makes up the other 50 percent. <br />111 <br />112 Chair Cihacek inquired if the Council indicated what they wanted the base rate to <br />113 be. <br />114 <br />115 Mr. Culver responded they did not, but there is one Councilmember that would like <br />116 the base rate largely reduced or eliminated. <br />117 <br />118 Member Trainor commented he agrees they need to make sure the money is there <br />119 to pay for maintaining the system and the cost seems reasonable. <br />120 <br />121 Member Misra inquired about the two six-inch pipe users, and if they should look <br />122 at their water usage differently since it is part of the cost of their business. <br />123 <br />Page 3 of 14 <br />