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City Council Study Session — 04/19/04 <br />DRAFT Minutes - Page 21 <br />representing a fair compromise for both parties and end users. <br />Discussion included elimination of the tier system and <br />restructuring of rates to discourage excessive water usage. <br />Finance Director Chris Miller addressed Council questions <br />related to the calculations used by the SPRWS to determine their <br />rate structure, while incorporating treatment of the water, <br />infrastructure and distribution costs, as well as long-term <br />planning. <br />Further discussion, addressed by Public Works Director Duane <br />Schwartz, included comparison studies performed by staff for <br />buying from St. Paul, selling the City's distribution system to the <br />SPRWS, or drilling our own wells and building our own <br />treatment system, with staff not finding any significant savings <br />from purchasing at wholesale costs. <br />Further discussion included consumption; the length of the <br />contract; chemical differences in content with surface water and <br />drilled wells and their incompatibility; production costs and rate <br />of return; planned improvements by SPRWS to alleviate taste <br />and odor problems experienced during the summer months; and <br />increased security of the system related to access and security <br />patrols. <br />Ihlan moved, Schroeder seconded, authorization to staff to <br />submit a 71 % counter-offer to the St. Paul Regional Water <br />System for the purchase of wholesale water. <br />Councilmember Schroeder encouraged staff to include strong <br />language in their cover letter/counter offer to the SPRWS that the <br />City is firm on their counter offer of 71 % for purchase of <br />wholesale water. <br />Roll Call <br />Ayes: Ihlan, Kough, Schroeder and Klausing. <br />Nays: None. <br />11. Consider Revising the City Manager's Contract Consider Revising <br />City Manager Beets left the dais and the meeting room during the City Manager's <br />