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218 both residential and commercial properties. He summarized the discussion to date <br />219 with the Commission. <br />220 <br />221 Chair Cihacek indicated the Commissioners that have been through the residential <br />222 discussion feel pretty good about the recommendation. <br />223 <br />224 Member Spencer indicated he read through the information and felt there was a lot <br />225 there and that due diligence was done and was comfortable with the <br />226 recommendation. <br />227 <br />228 Mr. Freihammer reviewed the Commercial Water rate structure with the <br />229 <br />Commission. <br />230 <br />231 <br />Chair Cihacek noted if commercial rates are raised the business does not bear the <br />232 <br />cost of that rate exclusively, it will be shared in the cost of the product, service and <br />233 <br />is not as clean of a cost increase as a residential rate. To really be impactful rates <br />234 <br />must be raised dramatically. There is not the same incentivization to conserve <br />235 <br />water because the costs are passed on. He noted the Commission did talk about <br />236 <br />meter separation in order to determine how much is irrigation rather than <br />237 <br />hypothesis. <br />238 <br />239 <br />Mr. Freihammer stated staff looked at Richfield and that is the route that city went <br />240 <br />with. Richfield required commercial accounts to separate the two and is one way <br />241 <br />to at least have irrigation charged at the highest tiered rate as a way to incentivize <br />242 <br />the business to use less irrigation and one way to go. There are not a ton of <br />243 <br />commercial properties that have extensive irrigation in the City, but there are some <br />244 <br />and could potentially impact them. That would address irrigation. There are some <br />245 <br />issues. As new buildings are built with redevelopment and new things installed it <br />246 <br />is pretty easy to accommodate it right then and not much for additional costs up <br />247 <br />front. If it is mandated within a year of being built there is more expense to retrofit <br />248 <br />some buildings and will be more difficult to separate the water line, etc. That is an <br />249 <br />option to look at moving forward. <br />250 <br />251 <br />Member Hammer asked if there has been any discussion about incentivizing new <br />252 <br />toilets or more efficient equipment in redeveloped family housing. <br />253 <br />254 <br />Mr. Freihammer indicated that has not been discussed too much. He thought that <br />255 <br />is one of the reasons why there has been a downward trend. Anytime anyone <br />256 <br />upgrades anything and certainly with all of the redevelopment going on in <br />257 <br />Roseville, those items have been put in and kind of where the market has gone. As <br />258 <br />buildings get upgraded that change occurs. That is certainly something that can be <br />259 <br />incentivized but was not sure if there was a need on the appliances. <br />260 <br />261 <br />Mr. Freihammer noted one thing that has been talked about, especially on the <br />262 <br />residential side but could be done on the commercial side, is incentivizing people <br />263 <br />who do have irrigation to do a smart meter. He noted the City is also looking at its <br />Page 6 of 10 <br />