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Regular City Council Meeting Monday,April 24, 2023 Page 3 Councilmember Schroeder indicated she wanted this item considered separately because she wanted to make some comments. She knew that buying the City's water from the City of St. Paul is the only option but she did want to point out that St. Paul's rate on the base cost is going up fifty percent in the next five years. It is based mainly on St. Paul having some capital expenses that are coming and unlike Roseville,who tends to put money away in the Capital Fund to pay for these things over time, it appears that St. Paul did not do that. So the rates have to be raised more dramatically in a shorter period of time. She wanted to make sure that the residents are aware that it is because of that reason the residents' water bills have been going up and not so much what Roseville has been doing. Not only is the base cost going up but the water usage or the volume is also going up forty percent and again, that is because of the City of St. Paul. She explained the cost is going up steeply in the next five years, and it is because of the capital piece that St. Paul is looking for. Mayor Roe noted this is not necessarily a surprise to City leaders and officials. The water utility was before the Council approximately a year and half to two years ago, introducing the council to the project that St. Paul Regional Water was looking to undertake at their facility. It is an important upgrade in terms of the ability to keep the water clean and safe for everyone to drink. He explained the City of St. Paul is financing the project through bonds, and it is the cost to pay back the bonds that is the primary contributor to the change in rates. Public Comment Mayor Roe offered an opportunity for public comment with no one coming forward. Groff moved, Strahan seconded, adoption of Resolution No. 11978 entitled, "Resolution Approving Amendment No. 3 to Contract for Water Services Between the Board of Water Commissioners of the City of St. Paul and City of Roseville, Minnesota." Roll Call Ayes: Strahan, Etten, Schroeder, Groff, and Roe. Nays: None. 7. Business Items a. Convene as the Board of Appeals a.i. Consider an Extension of the May 5, 2023, Compliance Date for Removal of Two "Micro-Units" at 2555 Victoria Street N City Manager Patrick Trudgeon briefly highlighted this item as detailed in the Request for Council Action and related attachments dated April 24,2023. Chair Roe clarified the interim use conditions in the Resolution with staff.