11-13-12 SCCSPECIAL, CITY CiL MEETING
OTSEGO CITY HALL
Freer 1, 2012
P
Call to Order,
Mayor Jessica Stoclarnp called the meeting to order at 8:26 PIS.
Roll Call: Mayor Jessica Sto l amp; ouncilmemb rs: Vern Heidner, Dan Scharber, and Toni
Darkenald. Excused absence: CM Doug Schroeder.
Staff: Lori Johnson, City Administrator; Gary Groen, Finance Director; Kurt Neidermeler,
P op[ S r ric and Tam! Loff, City Clerkk
11 Presentation of Sewer and Water Rate.
Jessica Cook,, Representative from Ehlers,p .resented 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. Cooly indicated that the presentation includes the
user rate changes recommended by the Administrative Subcommittee. Proposed modest
increases in both water and sewer rates provide adequate cash flog 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=
Cil Scharber questioned why rates for some users are proposed to decrease. Ms, Cool,
explained the rational including the i s 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 flat 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. Cid Heldner suggested the connection fees components be divided up
into trunk and facilities weighting trunk heavily. The City Council agreed. Ms. Cooly will make all
the suggested changes and then City staff` will bring back to the City Council for review.
2, Budaet eyrie .
A, later
B. Sewer
C. Building Safety
This item will be added to the November 26, 2012 City Council Workshop.
3. Adjourn.
CM Scharber motioned to adjourn. Seconded by CM Darkenwald. All in
favor. Motion carried. Adjourned at 10:02 PM.
�¢a��� C�
ayvor Jessica Stacks p
ATTEST: , U
Tami Loff, City Clerk
*immediately following the adjournment of the City Council meeting at 7;00 PM.