2008-09-23_PWETC_AgendaPacket - Laserfiche WebLink

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s~ Sanitary Sewer Ot~erations: The City maintains a sanitary sewer collection system to ensure the general ~% public's health and general welfare. The single largest operating cost to the sanitary sewer operation is the ~- treatment costs paid to the Metropolitan Council Environmental Services Division (MCES}. The MCES ac has notified us that our treatment casts are expected to increase by approximately 4% in 2009. In addition, s~ the City`s internal operating costs are expected to increase by approximately 5% reflecting higher motor ss fuel, insurance, and other operating costs. s ,~~; Like the water operation; to facilitate a change to a conservation-based rate structure, significant changes in ~ ~ the sanitary sewer rates need to occur. The portion of the rates designed to offset the City's fixed sanitary ~z sewer costs need to increase substantially, whereas the variable rate portion can be lowered. ~: ~T~ The Sanitary Sewer Fund is m good financial condition which has allowed. for lower-than-inflation rate increases over the last 5 years. However, planned capital replacements over the next 10 years will ~~~ necessitate a rate increase in 2009. ~7 ~r Storm Water DrainageOperations: The City provides for the management of storm water drainage to ~~ prevent flooding and pollution control, as well as street sweeping and the leaf pickup program. The storm ~o sewer costs are expected to be higher than. in previous years, due to an increase in the planned capital 7~ replacement of stormwater systems, as well as higher costs for motor fiiel, depreciation, and other operating 52 GoStS. 7 7~ Like the Sanitary Sewer Fund, the Storm Water Drainage Fund is in good financial condition which has :~ allowed for lower-than-inflation rate increases over the last. 5 years: However, planned capital replacements ~~ over the next l0 years will necessitate rate increases in 2009. Jf ~~ Rec, cling Operations: The recycling operation provides for the contracted curbside recycling pickup ~~ throughout the City. The primary operating cost is the amounts paid to a contractor to pickup recycling so materials. Thanks to strong revenue sharing dollars being recouped, no rate increase will be needed for ~ ~ 2009. sz s~ Water Conservation Measures ~~ Based on an analysis of the City's water customers, it appears that the Roseville residents are already s consuming less water than residents in many other communities. This is likely due to the fact that relatively ~r few residential properties in Roseville have irrigation systems, which is in contrast to soiree 2nd and 3rd ring 6 f suburbs. It may also be the result. of having a relatively lower population per household. However, there 6~ are additional measures that can betaken to encourage water conservation even further. ss ;o To provide an even greater incentive to conserve water, Staff is recommending two changes to the City's ~ ~ water rate structure; a tiered water rate structure, and a summer usage rate 72 Currently, all water users pay the same rate regardless of the amount they use. It is recommended that. a ~~ tiered rate be implemented that would charge residential users that consume in excess of 30,000 gallons per i; quarter; a 10% rate premium. Based on current customer behavior, this would impact l0- 1. S% ofthe City's ~c residential customers. A tiered rate for commercial customers is not recommended given the large disparity ~ ~ in usage among those customers. A tiered water rate would encourage households to take year-round 7~; measures such as; installing water-saving devices,. and taking shorter showers. is Page 2 of 7