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35 36 SanitarySewer Operations 37 The City maintains a sanitary sewer collection system to ensure the general public’s health and general 38 welfare. For 2021, the operational costs are expected to decrease by 2.84% mainly as a result of a 39 decrease in the costs charged by the Metropolitan Council Environmental Services Division (MCES). 40 While they have increased costs of treatment, the City’s share of flow has decreased the overall cost to 41 the City of Roseville. The capital outlay that is factored into the rates is based on a 5 year average and 42 that number has increased from $958,000 to $1,349,000 based on a correction in that formula linkage. 43 44 The Base rates require a 3.5% increase to cover the fixed costs which are operational and capital only. 45 The usage rates require a modest 1.92% increase to cover the MCES total costs. See Attachment B for 46 the rate analysis. 47 48 Recycling Operations 49 The recycling operation provides for the contracted curbside recycling pickup throughout the City and 50 related administrative costs. The primary operating cost is the amounts paid to a contractor to pick up 51 recycling materials. 2020 had significant increases as a result of higher contractor costs. The market 52 for recycled materials is a global one, and it had declined significantly during the prior year. For 2021, 53 which is the last year of our current contract, the City has budgeted a 3.74% increase in the contract 54 costs. A customer rate increase from $9 per quarter to $9.36 (4%) has been proposed to accommodate 55 the higher costs. See Attachment B for the rate analysis. 56 57 Recommended Rates for 2021 58 The following table provides a detailed breakdown of the proposed rates including the rate structure 59 which depicts how the operating cost burden is distributed to various customer types. The table also 60 shows the Water rate options from the Ehlers Utility Rate Study. 61 20202021 Ehlers Utility Rate Study Water Base Rate CategoryRateRateComments Option 1Option 2 Single-Family Residential$ 62.10$ 63.34Standard SF rate 18.88 34.57 Single-Family Residential: Low-Income Discount 40.35 41.17Standard SF rate x 0.65 18.88 34.57 ** Non-SF Residential (5/8" Meter) 62.10 63.34Standard SF rate 18.88 34.57 Non-SF Residential (1.0" Meter) 77.65 79.20Standard SF rate x 1.25 47.20 86.43 Non-SF Residential (1.5" Meter) 124.00 126.48Standard SF rate x 2.00 94.40 172.85 Non-SF Residential (2.0" Meter) 233.00 237.66Standard SF rate x 3.75 151.04 276.56 Non-SF Residential (3.0" Meter) 465.80 475.12Standard SF rate x 7.50 302.08 553.12 Non-SF Residential (3.0" Compound Meter) 330.40 604.98 Non-SF Residential (4.0" Meter) 931.65 950.28Standard SF rate x 15.00 472.00 864.25 Non-SF Residential (4.0" Compound Meter) 566.40 1,037.10 Non-SF Residential (6.0" Meter) 1,758.00 1,900.62Standard SF rate x 30.00 1,510.40 2,765.60 ** Low Income Discount on sewer only 62 63 64 65 66 67 68 Page 2 of 4