ITEM 3.2FI�rEEM 3.2 F
SPECIAL CITY COUNCIL MEETING
OTSEGO CITY HALL
November 1, 2012
:00 PM
CII to Order.
Mayor 3e si a Stockamp called the meeting to order at 8:26 PNS*
Roll Cell: Mayor Jessica St kamp; n ilmernbers: Vern l eidn r, Dan S barber, and Tori
Darkenwald. Excused absence: CM Doug Schroeder.
Staff: Lori Johnson, City Administrator; Gary Gr en, Finance Director; Kurt Neldermeier,,
Pe pleServie and Tani Luff, City Clerk.
1, Presentation of Sewer and water Rate Study.
Jessica Cook, Representative from Ehlers, presented the results of the utility rate study
including the proposed rates. The Council agreed with transferring funds from the Water fund
to Sewer fund as outlined in the study. Ms. Cook indicated that the presentation includes the
user rate changes recommended by the Administrative ti ubc mmitte . Proposed modest
increases in both water and sewer rates provide adequate cash flow for bond payments, capital
and operating expenses. The Council reviewed the growth projections included in the study.
The SAC and WAC fees are proposed to increase slightly.
CM Schrber questioned why rates for some users are proposed to decrease. IF Cook
explained the rational including the DNWs required conservation rate structure that is required
effective In 2015, the desire to mitigate large increases for business, and the desire to charge
more for irrigation use. The City Council agreed to leave the .monthly water fiat rate at $8.00
for both commercial, residential, and irrigation users and that the proposed increase start in
2013 instead of 2014 as proposed. There was discussion on residential and commercial rates
and the Council directed that residential and commercial rates be the same. The Council
directed that all irrigation is to be charged at $1.60 per thousand. The City Council gave other
suggested rate changes. CM Heidner suggested the connection fees components be divided up
into trunk and facilities weighting trunk heavily= The City Council agreed, fps. Cook will make all
the suggested charges and then City staff will bring back to the City Council for review.
r Budget review:
A. Watpr
B. Sewer
C. Building Safety
This iters will be added to the November 26,, 2012 City Council workshop.
3. Adjourn.
CM Scharber motioned to adjourn, Seconded by CM Darkenwatd. All in
favor. Motion carried. Adjourned at 10:02 PM,
ATTEST:
Tam! Loff, City Clerk
Mayor Jessica Sorp
*immediately following the adjournment of the City Council meeting at 7:00 PM.