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City Council <br />Meeting Minutes <br />May 6, 2014 <br />Page 19 of 27 <br />and differing block sizes for each meter size <br />2. Cost of Service — customer class basis <br />• Service charge based on meter size, no volume allowance <br />• Volume rate varies by customer class, includes fixed rate blocks <br />3. Cost of Service — AWC basis <br />• Service charge based on meter size, no volume allowance <br />• Volume rate in each block same for all customers, block size for each customer <br />Varies (AWC — Average winter consumption) <br />Public Works Director Kowar explained the City has no interest in knowing how many <br />people there are in a household. He noted this was a topic of concern. The City does <br />not require that level of complexity or detail. The water is metered in November, <br />December January and February and will be able to calculate the AWC for wastewater. <br />There is agreement to move forward for wastewater. He explained AWC is just for a <br />base usage. <br />Wastewater and Stormwater Rates: Rate Study Committee Recommendations <br />• Wastewater Rate Structure - Implement usage -based rate structure <br />• Stormwater Rate Structure - Continue current structure until residential <br />impervious data is available <br />COUNCIL COMMENTS <br />Council member Stolzmann stated the public is not unhappy about paying for the water <br />they use. They do not want to be told they have to pay a block rate for the amount of <br />water others use. <br />Public Works Director Kowar explained there is an inequity for people being penalized <br />for using water efficiently, while others are not penalized for wasting water. <br />Council member Lipton inquired what staff wants from Council. Public Works Director <br />Kowar wanted to reopen the conversation to evaluate rate structure change that would <br />offer a more equitable structure. <br />Council member Lipton asked if staff had a recommendation. Public Works Director <br />Kowar explained the Council decided the water budget doesn't work. Staff is trying to <br />provide a hybrid for water rates. <br />Public Works Kowar explained the Task Force worked on solutions and conducted <br />public open meetings, which were not well attended. He explained it has been a year- <br />long process and the recommendations were discussed. <br />Mayor Muckle proposed the City Council listen to the rest of the presentation and take <br />public comments. <br />