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Regular City Council Meeting Monday, January O5, 2009 Page 2 based rate structure to meet a new requirement under State Law to encourage con- servation year round, which also required changes to the City's decades-old base service fee and rate subsidization. Mr. Miller noted that the fee change incorpo- rated and ensured that fixed costs for the City's water system were being recov- ered and that the new usage fee was corrected accordingly. Mr. Miller advised that this correction created a sizable increase in the base fee, while for a typical household, it reduced their usage fee. Mr. Miller further advised that those low- volume residential users (5-10,000 gallons/quarter) would experience an increase as their rates were no longer being subsidized. Mayor Klausing noted that the City Council had authorized staff to take this ac- tion last fall; and opined that he was supportive of the action in an effort to reward water conservation. Councilmember Ihlan requested that staff provide calculations on how bills will be structured now compared to past billing, not just for average users, but for high and low volume users. Councilmember Ihlan opined that she was concerned that those with higher usage may be paying less under the new structure, and sought clarification from staff; as well as further calculations for commercial users. Councilmember Ihlan advised that her intent with the requested information was to determine if the new rate structure was accomplishing the intent of the City Council. Mayor Klausing concurred with Councilmember Ihlan's request for information, clarifying the need for calculations from staff as to specific volume users, as well as further analysis later in the year after data from the new rate structure had been in place to determine measurable impacts and if the City Council's objectives were being achieved. Councilmember Pust noted that the article in the newsletter was not as clear as it should be for residents to understand the new rate structure, and asked that staff follow-up with an article providing additional clarity in the Roseville Review, as well as on the City's website, including the City Council's rationale and new State law requirements to achieve water conservation efforts. Councilmember Roe noted that he had previously e-mailed staff requesting their analysis based on a year-long use history to provide an overall annual impact and perspective from which the City Council could respond to concerned residents. Councilmember Roe also noted indications that high volume users (over 30,000 gallons/quarter in the summer months) appeared to be paying less than under the previous rate structure, and asked that staff provide an analysis over aone-year period at minimum to provide that comparison data as well. Mr. Miller clarified that, when staff sought City Council approval of the new rate structure, they had indicated that it would take a year to analyze whether the in-