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172 Mr. Freihammer directed the Commission to look at the winter use graph per 173 quarter. He reviewed the graph with the Commission and noted it was less than a 174 percent that use that tier in the winter and that would be the same amount of people 175 affected in the Summer months. He noted some of those may have leaky plumbing 176 and City Staff tries to notify those people. 177 178 Mr. Culver stated if the Council were to adopt this and staff was to implement this 179 new tier, staff would make concerted efforts to notify and educate those customers 180 over the 50,000-gallon tier to let them know this is coming and to take a serious 181 look at why the resident is using that much water, particularly in the winter months. 182 183 Chair Cihacek stated if no changes are made and the City does get the money, to 184 allow for conservation programs moving forward, the City can develop some sort 185 of incentive program which would help the residents who are over the 50,000- 186 gallon tier to lower their rates and become educated. 187 188 Commissioner Kors wondered how many households this would impact in the City. 189 190 Mr. Freihammer stated it would impact 350 residences in the summer and 17 191 residences in the winter. He stated in the summer staff would target that group, 192 even the 40,000-gallon tier to educate them, if this were to be adopted. 193 194 Chair Cihacek thought there would be opportunity with additional funding to have 195 good outreach and communication and a potential rebate on some of the programs. 196 197 Commissioner Kruse thought if this tier was adopted it would be higher than the 198 commercial rate for that same amount of usage. 199 200 Chair Cihacek thought if the rates were increased for residential the next 201 Commission task would be to look at commercial rates. 202 203 Mr. Freihammer stated commercial will be more varied because there is no typical 204 commercial property, and some are using it as process water, not necessarily 205 irrigation. Commercial is almost a different analysis. 206 207 Mr. Culver stated staff could modify the commercial rate and then set up an 208 exception opportunity so if the business can show the City that that particular 209 business is actually using the water for industrial purpose or production of aproduct 210 then the City could give them a different rate for that and still encourage those that 211 are consuming that much water for irrigation to do something different. 212 213 Chair Cihacek thought this would be a totally different analysis to look at rates and 214 would need a conversation at a different meeting, if needed. He thought if the City 215 raised one tier there would need to be a conversation for commercial. 216 217 Member Joyce asked if the biggest commercial user was Rosedale. Page 5 of 12