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09-08-09 WorksessionJ CALL TO ORDER CITY COUNCIL MINUTES Richfield, Minnesota Special Worksession September 8, 2009 The meeting was called to order by Mayor Goettel at 6:00 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor;. Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; Robert Hintgen, Utilities Superintendent; and Cheryl Krumholz, Recording Secretary. Item # I DISCUSSION REGARDING WATER CONSERVATION RATES (MEMO NO. 147) Public Works Director Eastling made a PowerPoint presentation (City Clerk's File No. C-454) regarding water rates proposed for 2010 and the water conservation rate. He discussed the proposed block rate option, including the differences and difficulties with determining a commercial rate. The DNR communication plan on the rates is to have water consumers, i.e. Richfield, educate the public. The suggested rate by City staff is below the DNR recommendation because staff was trying to create no hardship for the residents. Council Member Wroge discussed his concerns regarding aquifer usage and limitations for gasohol. Public Works Director Eastling stated the City is trying to be responsible with a reasonable effort to control groundwater. He also discussed Richfield's use of aquifers. The DNR requires monitoring of the aquifer depth and it is a statewide concern. The City Council discussed the impact on rates for watering trees and vegetation. Public Works Director Eastling stated all water fund reserves are spent down and recovery of funds is necessary. Public Works Director Eastling discussed the impact on rates for properties that irrigate. Utilities Superintendent Hintgen reviewed the finding of the water structure rates of other metro cities that have an existing rate structure in place, including the block rate but with different tier structures. Utilities Superintendent Hintgen added that chemical costs for the softening water process have significantly increase, especially lime products. Public Works Director Eastling discussed the proposed public information plan. Special Worksession Minutes -2- September 8, 2009 The City Council consensus was to proceed with the proposed modest rate approach to recover costs and build up reserves. City Manager Devich explained the potential issues residents may have if there is a mid-year rate adjustment because the once per year adjustment provides acatch-up time and covers all seasons. ADJOURNMENT The meeting was adjourned by unanimous consent at 6:41 p.m. Date Approved: September 8, 2009 ll Cheryl Kfumhol~ ~ en/,~. vex Recording Secretary City Manager