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