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91-2024�R��`'���� �: A � Council File # - ��'oJ���v� Green Sheet � CITY OF SAINT PAUL, MINNESOTA°'�D' � ��� '3 �e - ��-_. Presented By ' Referred To Committee: Date An Ordinance amending Chapter 85, as amended, of the Saint Paul Legislative Code, pertaining to the regulation of rates in the Citv of Saint Paul. THE COUNCIL OF THE CITY OF SAINT PAUL 1�ES ORDAIN: Section 1 . That Section 85.04 of the Saint Paul Legislative Code hereby is amended by deleting the existing consumption rate schedule therein contained and inserting in lieu thereof the following: RETAIL RATES CONSUMPTION CHARGE: � . Inside Citv Outside Citv For first 50,000 cu. ft. per month $1 .00 per 100 cu. ft. $1 .20 Next 450,000 cu. ft. per montti $ .98 per 100 cu. ft. $1 . 18 All over 500,000 cu. ft. per month $ .96 per 100 cu. ft. $1 . 15 Section 2. That Section 85.05 is revised as follows: � Section 85.05 Outside Master Meter Rates The outside the City rates charged to the City of Roseville under the provisions of a master meter contract with the Board shall be as follows: SteU A First 1 ,000,000 cu. ft. per month 100� of $1 .00 (1st Step Rate Inside City) _ $1 .00 per 100 cu. ft. Step B Next 3,500,000 cu. ft. per month 90� of $1 .00 (Step A above) _ $0.90 per 100 cu. ft. ����'�����. ��--�'l 0?0�?� - ���j3 steu c Next 5,500,000 cu. ft. per month 75� of $1 .00 (Step A above) _ $0.75 per 100 cu. ft. Sten D All over 10,000,000 cu. ft. per month 57.2% of $1 .00 (Step A above) _ $0. 572 per 100 cu. ft. The outside the City rates charged to the City of Little Canada under the provisions of a master meter contract with the Board shall be as follows: Step A First 1 ,000,000 cu. ft. per month 100% of $1 .00 (1st Step Rate Inside City) _ $9 .00 per 100 cu. ft. Step B Next 3,500,000 cu. ft. per month 84� of $1 .00 (Ste� A above) _ $0.84 per 100 cu. ft. Stev C Next All over 4,500,000 cu. ft. per month 70� of $1 .00 (Step A above) _ $0.70 per 100 cu. ft. Section 3. This Ordinance shall take effect and be in force from and after January 1 , 1992, and all billings rendered on and after January 1 , 1992 shall be computed on the basis of the above rates. Yeas NaYS Absent Requested by Department of: imon —� �osw z �— Water Utility � acca ee @ 771dA � � '' une �— z son —T— By: � � - General Manager Adopted by Council: Date QE� 3 19g� Form App o ed by City torn�y ,�, f ,�' , ;;; ,� Adoption rti ied by Co il Secretary gy: ,%'� � .�- � ,.*` i ; , By� " , y Apprdved,;�y Mayor( for Submission to Approved b , ayor: te ` ��� =� "���' Coun�1 ' ; !^���,4�r�i!� By: By: Ptl�IIS�E�! �;�C � '91 . ����°°�J DEPARTMENT/OFFICE/COUNCIL . DATE INITIATED NO 15 3 7 8 Water ot�i�tY 9/20/91 GREEN SHEET 1 AT INITIAUDATE CONTACT PERSON&PHONE n DEPARTMENT DIRECTOR !�CITY COUNCIL i.i_, Tl'lOIR3S D. Mogren - 298-4100 ASSIGN �CITY ATfORNEY �� g� �CITY CLERK NUMBER FOR �BUD(iET DIRECTOR �FIN.8 MGT.SERVICES DIR. MUST BE ON COUNCIL AGENDA BY(DATE) ROUTING ORDER m MAYOR(OR ASSISTANT) ' � TOTAL#OF SIGNATURE PAGES 1 (CUP ALL LOCATIONS FOR SIGNATURE) , ACTION RE�UESTED: Enact the attached City of Saint Paul Ordinance adjusting water r�tes provided for in Sections 85.03 and 85.05 of the Saint Paul Legislative Code. ' RECOMMENDATIONS:Approve(A)or ReJect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWIN(i QUESTIONS: _PLANNINCi COMMISSION _ CIVIL SERVICE COMMISSION 1• Has this person/firm ever worked under a contract for this department? _CIBCOMMITTEE � 13['far_� A'F fA7at,Pr YES NO COI[Yri13SlOri2Y'8 2• Has this person/firm ever been a city employee? _STAFF — YES NO _DISTRIC7 COURT — 3. Does this person/firm possess a skill not normally possessed by any current city employee? SUPPORTS WHICH COUNCIL OBJECTIVEI YES NO Explain ell yes anawsrs on separats shsst aod attpch to yreen shest INITIATING PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): 'Phe Board of Water Commissioners has adopted a budget for 1992 i�s�zires a rate increase in order to provide ader�uate funding for the budyet. TMe attached ordinance will provide for the required rate increase. SEP�' 2 4 1991 MAY�R'S OFFIC� ADVANTAGES IF APPROVED: ' The Board's 1992 budget will be adequately funded. DISADVANTA(iES IF APPROVED: The cost of water service to Utility customers will increase approximately eight percent for a typical single family home. ' DISADVANTACiE3 IF NOT APPROVED: ;���,��,f��� Coun�il; R�se�.r�h Center t��� 2t 1�' OCT18 1991 �:;iTY �'e.��� TOTAL AMOUNT OF TRANSACTION S N�A COST/REVENUE BUDGETED I(CIRCLE ONE) YES J NO FUNDIN(i SOURCE N/A ACTIVITY NUMBER 2�000-5313 FINANCIAL INFORMATION:(EXPLAIN) �'�, I W NOTE:` COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225). ROUTING ORDER: . Below are correct routings for the five most frequent rypes of documents: CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept.Grants) 1. Outside Agency 1. Department Director 2. Department Director 2. City Attorney 3. City Attorney 3. Budget Director 4. Mayor(for contracts over$15,000) 4. Mayor/Assistant 5. Human Rights(tor contracts over$50,000) 5. Ciry Council 6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services 7. Finance Accounting ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION(all others, and Ordinances) 1. Activity Manager 1. Department Director 2. Department Accountant 2. City Attorney 3. Department Director 3. Mayor Assistant 4. Budget Director 4. City Council 5. City Clerk 6. Chief Accountant, Finance and Management Services ADMINISTRATIVE ORDERS(all others) 1. Department Director 2. Ciry Attorney 3. Finance and Management Services Director 4. City Clerk TOTAL NUMBER OF SIGNATURE PAGES Indicate the#of pages on which signatures are required and paperclip orflag each of these pages. ACTION REQUESTED Describe what the projecUrequest seeks to accomplish in either chronologi- cal order or order of importance,whichever is most appropriate for the issue. Do not write complete sentences. Begin each item in your list with a verb. RECOMMENDATIONS Complete if the issue in question has been presented before any body,public or private. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate which Council objective(s)your projecUrequest supports by listing the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.) PERSONAL SERVICE CONTRACTS: This information witl be used to determine the citys liability for workers compensation claims,taxes and proper civil service hiring rules. INITIATING PROBLEM, ISSUE,OPPORTUNITY Explain the situation or conditions that created a need for your project or request ADVANTAGES IF APPROVED Indicate whethe�this is simply an annual budget procedure required by law/ charter or whether there are specific ways in which the City of Saint Paul and its citizens will benefit from this projecUaction. DISADVANTAGES IF APPROVED What negative effects or major changes to existing or past processes might this projecUrequest produce if it is passed(e.g.,traffic delays, noise, tax increases or assessments)?To Whom?When?For how long? DISADVANTAGES IF NOT APPROVED What will be the negative consequences if the promised action is not approved? Inability to deliver service?Continued high traffic, noise, accident rate?Loss of revenue? FINANCIAL IMPACT Although you must tailor the information you provide here to the issue you are addressing, in general you must answer two questions: How much is it going to cost?Who is going to pay? CITY OF ST. PAUL (.� 9�``��a' e �� OFFICE OF THE BOARD OF WATER COMMISSIONERS RESOLUTION—GENERAL FORM No 4z26 - coMMiss oNER-�iY�-er DATE September �,7, 1991 WHEREAS, After due consideration and study c�f the financial condition of the Water Utilitti� �nd the projection af the expenses in the future, the �oard has determined that the present rate structure is inadequate to continue operations witltout an adjustment; now, therefore, be it RESOLYED, That the Bo�rci of Water Commissioners llas hereb�� determined that the rate structure should be adjusted and that all hillings rendered on and after Januarw 'i , 1992 shall be in accordance with the following schedule: RETAIL RATES CONSiMPTION CHARGE: Insid� City Qutside Citi� For first 50,tJOQ cu. ft. per month $1.U4 per 100 cu. ft. $1 .25 per 100 cu. ft. Next 450,000 cu. ft. per aiont.h �1 .0�? per 100 cu. ft. $1.22 per 100 cu. £t, All over 500,000 cu. ft. per month $1 .U0 per 1flp cu. ft. $1 .20 per 10� cu. ft. DF.MAND CBARGE: Inside City Outside Citti� 3/4" Meter 8 Smaller . . . . . � 3.20 per yuarter $ 3.84 per quarter 1" Meter . . . . . . . . . . b.05 per c�uarter 7.26 per quarter 1 1/4" Met.er . . . . . . . . . . 10.70 per c�uarter 12.bQ per quarter 1 1j2" Meter . . . . . . . . . . a.'+0 per nionth 6.48 per mont.h 2" Meter . . . . . . . . . . 10. 10 per month 12. 12 per manth �� �, 3 Meter . . . . . . . . . . i . 50 per month 33.00 per month 4" Meter . . . . . . . . . . 46. �0 per month 55.80 per month 6" Meter . . . . . . . . , . 94.70 per month 113.64 per m�nth 8" Meter . , . . . . . . . . 1i2.40 per month �06.88 per month 10" Meter . . . , . . . . . . ?i5.Otl per n�onth 330.00 per month 12" Meter . . . . . . . . . . 379.50 per roanth 455.40 per month Water Commissioners Adopted by the Board of Water Commissioners Yeas Nays 19— In favor _ Oppose� SECY. CITY OF ST. PAUL ���°�O°��� ;f� � OFFICE OF THE BOARD OF WATER COMMISSIONERS RESOLUTION—GENERAL FORM No. PRESENTED BY COMMISSIONER DATE RflSEYILLE MASTER METER RATE Step A First 1 ,000,000 cu. ft. per month 10QX of $1 .04 ( 1st Step Rate Tnside City) - $1 .04 ger 1Q0 cu. ft. Step B Next 3,500,000 cu. ft. ger manfih 90X of $1 .04 (Step A above) _ $0.936 ger 100 cu. ft. S t.gp C Next 5,50U,000 cu. ft. per month i59b of $1 .04 (Step A above) - $0.780 per 100 cu. ft. Stev D All over 10,000,400 cu. ft. per month �7.2� of $1 .Q4 (Step A above) - $0.595 per 1�0 cu. ft. LITTLE CANADA MASTER METER RATE Steu A First 1 ,000,000 cu. ft. per month 100X of $1 .04 { 1st Step Raze Inside Cit.r•) _ $1.04 per 100 cu. ft. Stev B Next 3,50tl,OQU cu. ft. per month 84% of $1 .Q4 (Step A above) _ $0.874 per 100 cu. ft. Water Commissioners Adopted by the Board of Water Commissioners Yeas Nays 19— In favor _ OpposP� SECY. . . CITY OF ST. PAUL �9�~a0�w� , OFFICE OF THE BOARD OF WATER COMMISSIONERS RESOLUTION—GENERAL FORM No PRESENTED QY COMMISSIONtR DATF LIT'TLE CMiADA MASTEit I�ETE[t RATE (continued) Sten C All over 4,500,000 cu. ft. per month 70� of $1.04 (Step A abovea - $0.?28 per 100 cu. ft. now, therefore, be it FURTHER RE50LYED, That the City Council is requested to hereby concur and adopt an Ordinance putting into effect these adjusted rate schedules. Water Commissioners Adopted by the Board of Water Commissioners Yeas �e�T �`�+�+�r �`�'���1fr�t� ��34��G. �w,� � �,�',� 19�� �`����+1'�a�� �tir��r wi. NR r ', In favor _ Opposed- �-� ' '��----- SECY. / . �����°�� � �e,,�=**o. � � ' CITY OF SAINT PAUL ✓ � � OFFICE OF THE MAYOR e a � I�I�ii' ; +� �� 34T CITY HALL +ss• SAINT PAUL, MINNESOTA 55102 JAMESSCHEIBEL (612) 298-4323 MAYOR October 16, 1991 Council President William Wilson Councilmember Tom Dimond Councilmember Roger Goswitz Councilmember Bob Long Councilmember Paul Maccabee Councilmember Janice Rettman Councilmember David Thune Seventh Floor, City Hall/Courthouse Saint Paul, Minnesota 55102 RE: Water Department Rate Ordinance Dear Council President Wilson and City Councilmembers: The attached ordinance has been routed through my office before submission for Council action. This ordinance does not require my approval for submission to the City Council. I do, however, oppose it for the reasons set out below. Further, if approved in its present form, I do not rule out a possible veto. The requested ordinance reflects an average customer increase of eight percent. My proposed property tax levy for 1992 to finance operations and maintenance of the General Fund reflected a zero percent increase. It's inconsistent to allow sales and service charges of the Water Utility to grow at this proposed rate. A rate of four percent, or half of the requested rate, would save Saint Paul residential customers almost $400, 000. Sincerely, � �f;• ����,' Jame Scheibel JS: fs Attachment a�ae Printed on Recycled Paper , - � ` �9�-�oa� INFORMATION ON . WATER UTILITY RATE INCREASE REQUEST 1. From budgeted 1991 (corrected) to budgeted 1992, operation and maintenance expenses increased by approximately $990 ,000, or 4 .7$. . 2. Approximately $870, 000 of this increase is beyond the control of the Utility and includes the following: salaries and fringes (less WIP credits) electrical energy and fuel � chemicals City services rent well abandonment 3 .�� The metro area CPI has increased since 1988 at a rate of 4 to 5 percent per year. 4. Due to the above average rainfall in 1991 , the Utility may experience a revenue shortfall of approximately $989 ,000 - below the 1991 budgeted amount for revenue. 5. The Utility' s balance of funds (reserve) available for capital improvements has dropped from 4 .2 million at December 31, 1989 , to 2. 4 million at December 31, 1990. At May 31, 1991, this balance has decreased to $508 , 295. 6. The Utility has initiated cost-effective programs and has reduced the number of FTE' s by 14 from 1988 to 1990 . The Utility has budgeted for three fewer FTE' s in 1992; a total reduction of 17 since 1988. 7. A rate increase of eight cents/100 cubic feet will enable the Utility to carry out a necessary capital improvement program which includes approximately 1 .9 million dollars of water main and service connection replacement work in conjunction with the sewer separation and paving program. �������� � �� � � Council File � � ��D� � , ��--�-f,; Ordinance ,� Green Sheet � ;� 7 a ORDINANCE CITY OF SAINT PAUL, MINNESOTA / P esented By Referred To ��1�, n c t / ' .- , C ittee: Date �v� iS� - l; /� An Ordinance amending Chapt r 85, as amended, of the Saint Paul Legislative Cod , pertaining to the regulation of rates in the City of S int Paul. THE COUNCIL OF THE CI OF� SAINT PAUL DOES ORDAIN: Section 1. That Sec ion 85.04 of the Saint Paul Legislative Code hereby is amended bg deleting the ex'sting consumption rate schedule therein contained and inserting in �ieu thereof th following: RETAIL RATES CONSUMPTION CHARGE: Inside Citv Outside Citv For first 50,000 cu. ft. per month $1.04 per 100 cu. ft. $1.25 Next 450,000 cu. ft. p month $1 .02 per 100 cu. ft. $1.22 All over 500,000 cu. . per month $1.00 per 100 cu. ft. $1.20 Section 2. hat Section 85.05 is revised as follows: Section 8 .05 Outside Master Meter Rates The outs' e the City rates charged to the City of Roseville under the provisions of a ma ter meter contract with the Board shall be as follows: Step A r First 1 ,000,000 cu. ft. per month 100X of $1 .04 (1st Step Rate Inside City) _ $1.04 per 100 cu. ft. Step B Next 3,500,000 cu. ft. per month 90X of $1..04 (Step A above) _ $0.936 per 100 cu. ft. ������;:�" �_aoa� ✓ �� Step C f� {� Next 5,500,000 cu. ft. per month f 75X of $1.04 (Step A above) �` _ $0.780 per 100 cu. ft. � x � Step D ,/` i' All over 10,000,000 cu. ft. per montYr �` 57.2X of $1.04 (Step A above) / _ $0.595 per 100 cu. ft. ; ; ��� The outside the City rates charged tq"the City of Little Canada under the provisions of a master meter contract with th$' Board shall be as follows: . � Step A 1 ; �: First 1 ,000,000 cu. ft. per montb�' 100X of $1 .04 (1st Step��tate Inside City) _ $1 .04 per 100 cu. ft. I� Step B �' Next 3,500,000 cu. ft. per �fonth 84� of $1 .04 (StepfA above) _ $0.874 per 100 cu. ft. � � Stev C � Next All over 4,500,OOOf�u. ft. per month 70X of $1 .04 (��ep A above) . _ $0.728 per 100 cu. ft. Section 3. This Ordir}�nce shall take effect and be in force from and after January 1 , 1992, and all billin�s rendered on and after January 1 , 1992 shall be computed on the basis of the ab'ove rates. /� r , i � � �/ i ! Yeas Navs ' Absen Requested by Department of: nwl _ 4Vater Utility acca ee e t m n � �� une z son BY� r e era an er Adopted by Council: Date Form App ed by City A rney Adoption Certified by Council Secretary By: BY° Appro ed by Mayo for Submission to Approved by Mayor: Date Counci By: �:��'�.� By: , . �9���� � CITY OF SAINT PAUL nit Iltl OFFICE OF THE CITY COUNCIL Members: JANICERLTTMAN Janice Rettman, C �D�COLLINS ����yon Roger 6oswi tz ��lative Assistant Paula Maccabee KATHY ZIEMAN Legislative Assistant COMMITTEE REPORT FINANCE, MANAGEMENT, AND PERSONNEL COMMITTEE NOVEMBER 14, 1991 , � � J��;-� %� . a�, o�.�.:�.��, ,�`�.�, a�-e 91-2024 - amending Chapter 85, as amended, of the Saint Paul Legislative Code, pertaining to the regulation of rates in the City of Saint Paul . (Referred from Council 10/29/91) Motion to call the ordinance from Committee at the Budget Hearing on November 14 carried 3-0. Motion to amend the ordinance to reflect a four percent rate increase carried 2-1. (Ayes� - Rettman, Maccabee; Nay - Goswitz) (Rettman will bring up this ordinance again to reconsider further reduction of water rates. City Council public hearing is scheduled for November 26, 1991) CITY HALL ROOM NO.718 SAINT PAUL,MINNESOTA 55102 612/298-5289 Sa�46 PrInted on Recycled Paper . . ���ao�� - �: ,; . CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM R�CEIVED � Nov o 71991 DATE: , November 5 , 1991 �%ITY CLERK T0: Roger Goswitz, President Board of Water Commissioners FROM: Thomas D. Mogren, General Manager / �V ( SUBJ: Water Rate Ordinance As you know, the proposed 1992 Water Rate Ordinance which was recommended by the Board of Water Commissioners has had one reading before the City Council . A 2nd, 3rd (public hearing) and final reading followed by a 30 day publication period are required before new water rates may take effect. New rates have, in the past, been implemented with water and sewer billings issued after January l, in order to assure fairness by charging all customers the same rates over a twelve month period. In order to have new rates in place by January l, it will be necessary to have the 3rd reading (the public hearing) no later than November 19 , 1991 . The final reading could then be scheduled for November 26th, with publication following on November 30th and adoption 30 days later on December 29, 1991. The Water Utility recommends the second reading of the ordinance be scheduled as soon as possible and the Finance Committee continue its consideration of the rate ordinance so the 3rd reading may take place no later than November 19th. If there are any questions on this, please let me know. TDM:pak cc: Molly O'Rourke /�/ � ,r7 � ,� / � �' C,'' � � - �9��0-�� � CITY OF SAINT PAUL �ii�`i i:i° OFFICE OF THE CITY COUNCIL . "• .... Members: JANICE RETTMAN Janice Rettman, CF�E Go��INs ����F��n Roger Goswi tz �gulative Assistant Paula Maccabee KATHY ZIEMAN I.egislative Assistant COMMITTEE REPORT FINANCE, MANAGEMENT, AND PERSONNEL COMMITTEE NOVEMBER 14, 1991 . Sa.�;-.�. /'� ' �c. D�� ....� ��-a-.z.r �i 91-2024 - amending Chapter 85, as amended, of the Saint Paul Legislative Code, pertaining to the regulation of rates in the City of Saint Paul . (Referred from Council 10/29/91) _ Motion to call the ordinance from Committee at the Budget Hearing on November 14 carried 3-0. � . Motion to amend the ordinance to reflect a four percent rate increase carried 2-1. (Ayes - Rettman, Maccabee; Nay - Goswitz) � (Rettman will bring up this ordinance again to reconsider further reduction of water rates. City Council public hearing is scheduled for November 26, 1991) . CITY HALL ROOM NO.718 SAINT PAUL,MINNFSOTA 55102 612/298-5289 8�46 , Printed on Rccycicd Yaper � � . � �'S ` `y� L . COMMITTEE REPORTS: • 28. �cond Reading - 91-1921 - An ordinance amending section 62.106 of the Legislative Code pertaining to the Zoning Code and Accessory Buildings and Uses. (Housing & Economic Development Committee recommends approval) 29. Resolution - 91-1918 - approving review of amendments pertaining to assessory buildings to the Zoning Code and reporting its recommendations back to the City Council within 60 days of the adoption of the resolution. (Housing & Economic Development Committee recommends approval) 30. Resolution - 91-2124 - approving consideration of a grant in the first round of the 1991 Child Care Partnership Program for the Amherst H. Wilder Foundation. (Human Services Committee recommends approval) PUBLIC HEARINGS: 31. Third Reading - 91-1590 - An ordinance amending Sections 60.513 and 60.524 of the Legislative Code pertaining to Human Senrices Licensed Community Residential Facilities. (Housing & Economic Development Committee � recommends approval) 32. Third Reading - 91-2038 - An ordinance amending Sections 64.07 and 64.08 of • the Administrative Code pertaining to Deferred Assessments. (Laid over from November 14th) 33. Third Reading - 91-1741 - An ordinance amending Chapter 140 of the Legislative Code relating to skyways. (Public Works Committee recommends approval - Human Services Committee referred to Council without recommendation) 34. Final Order - 91-2125 - In the Matter of installing the Macalester/Bayard Area Storm Sewer Project Area bounded by Fairview, James, Saratoga and Ford Parkway. 35. Final Order - 91-2126 - In the Matter of improving streets, installing concrete curb and gutters, driveway aprons, and installing lantern style street lighting system in the Macalester/Bayard Area Street Paving and Lighting Project. � 36. Final Order - 91-2127 - In the Matter of installation of sanitary, storm sewer and water service connections, if requested by property owner for the Macalester/Bayard Area Storm Sewer and Street Paving and Lighting Project. 37. Resolution - 91-2128 - approving application for renewal of a State Class B , Gambling Premise Permit by Children's Heart Fund at Triviski's, 173 So. Robert Street. �"-9'i aaa� ,�' CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM November 27, 1991 TO: City Council Members FROM: Thomas D. Mogren General Manager ' Water Utility SUBJECT: 91-2024 WATER RATE ORDINANCE At the Public Hearing for the subject ordinance which took _ place on November 26 , 1991, the Water Utility was directed to respond to questions Council members may have regarding this matter. Attached for your information is a copy of questions previously directed to the Utility by the City Finance Committee along with responses to the questions. Also attached is a copy of INFORMATION ON WATER UTILITY RATE INCREASE REQUEST. Please review this information and if additional data is needed, forward the request in writing to my office so we may respond before the next scheduled discussion at the Council meeting of December 3, 1991 . TDM/cao Attachment � • ,: - ��r��a� CITY OF SAINT PAUL � INTERDEPARTMIIVTAL MIIr10RANDUAi To: Janice Rettman, Chair Finance, Mana.gement, and Personnel Committee From: Thomas Mogren, General Manager � Water Utility Date: October 23, 1991 , Subject: Response to questions from Btidget Hearin; held October 1, 1991 1) Are there any immediate plans for adding additional suburbs to St. Paul's water system as a way of increasinb revenue? The Board of Water Commissioners has not given the Utility staff any _ direction regarding expansion of the water service area. The Utility is not aware of any additional suburbs that desire water service from the Board. 2) Have the numbers run to see what effect there would be with a 125% rate structure across-the-board for outside St. Paul. F�irther, that all municipa.lities would be under contract by MaY of 1992. must be a aoal of the Utility. Currently, customers in cities that are provided with water service from the Board by means of a "reta.il" type contract pay 120% of the inside city rates. Increasing the charges to 125% of the inside city rates would increase the revenue to the Board from those cities by approxima.tely $240,000 per year. The ma,tter of renewing expired contracts for water service between the Board and suburban communities will be reviewed b3T the Board. 3) What is the percenta,ge of salary increases in your budget? F�cplain any increase in individual salary items. The tota.l 1992 salary budget increased 5.2% over 1991. The Utility included" in its 1992 budget request a 3% increase in object code 0161 (reserve for negotiated increase) . This estimated increase was based upon informa.tion requested from the City's Personnel Office. Several trade unions have already settled for approximately 3% increases for 1992. Step increases calculated for the 1992 budget accounted for the rema,ining salary increase and were budgeted in object code 0162 (reserve for promotions) . 4) Did the Ma.yor or Budget Office convey to your depa.rtment that there should be a policy of 0% increases for 1992 in keeping with the rest of the City? The Water Utility routinely receives information from the Mayor's Office � - � � �,r�i a�a� Janice Rettman October 23, 1991 Pa.ge 2 and the Budget Office directed to City departments. The Water Utility was aware of the 0% negotiated salary increase goal as set forth by the Budget Director; however, in order to reflect the Utility's revenue needs to cover all anticipa.ted operational expenses, an estimated 3% increase in the 1992 base payroll of the Utility was included in the budget request to cover eYisting and future negotiated wage increases for 1992. , The inclusion of this estima.ted ne�otiated increase was ma,de with the l�owledge of the Bud�et Office. The estima.ted nejotiated increase was recorded in each functional activity rather than in a 1LUnp sum amount in one activity. Allocating the increase in the functional activities provides more accurate cost information for each individual activity. Water Utility employees are subject to t�e same ba.roaining unit agreements as other city employees. Therefore, if a City wage freeze policy is enacted, Water Utility employees will be included in this freeze and will not receive the above estimated increases. 5) Run the numbers to determine how much of a savings there would be if there were no salary increases other than those for step increases. - The 1992 budget request for salaries is $11,323,423 compared to the 1991 budget of $10,759,943. Of the $563,480 increase, �313,169 relates to the estimated negotiated salary increases for 1992. 6) Page 1612 of the Proposed 1992 Budget, Volume III, shows an increase in the number of cubic feet of water sold from 1991 to 1992. What is the basis for projecting an increase? _ The 1992 estima,te of 2,240,000,000 ctibic feet of water to be sold is the same as the 1991 estimate. However, the 1992 estimate does reflect an increase over 1990 actual water sold. Page 55 of the Board of Water Commissioners Budget adopted for 1992 provides historical data. relating to water consumption. The average annual consumption for the years 1985-1990 was approximately 2,250,000,000. The Utility believes tha,t the 1992 estimate is realistic and to estimate a lower consumption level would require even higher water rates than presently proposed. 7) The water quality/water conservation project was funded previously. What is the status of implementing the project? Does this budget assume continuation of the same level of revenue coming in? Attached is the Board of Water Commissioners Water Conservation Plan as adopted at their meetina of October 15, 1991. . . , �9����°�� Janice Rettman October 23, 1991 Page 3 Utility sta.ff have been directed to proceed with implementing portions of the plan including the followino: -School education program -Public education through brochures, water bill inserts and city ca.ble channel -0bta.in consultant services to accomplish water conservation projects -Work with other governmental units to control use of pesticides, herbicides, fertilizers and other products which adversely affect water quality Estima.ted Water Conservation Plan eYpenditures for 1992 to date tota.l $68,000. The Board will have set aside $200,000 by years end 1991 to fund its Water Conservation Plan. The Board's 1992 budaet does not reflect additional fundin� for the pla.n. The need for additional funding will be addressed in future budgets of the Board. 8) Identify cuts that would accommodate only a one cent, two cent, or three cent raise. ��'hat cuts would you recommend as an alternative to the eight cent increase? Any cuts in the operation and maintenance spending plan for 1992 will result in a decrease in service level to the public and the customers served by the Utility. The Utility believes a reduction in the level of services is the least desirable alternative for accomplishing a cut in the budget and therefore a reduction of capital improvement costs is the prima,ry tool for achievina the desired cuts. The proposed budget of the Board for 1992 is based on revenue from the _ sale of water tha.t will require an increase in water rates of 8 cents/100 cubic feet in each of the three rate steps. A rate increase of three cents, two cents, one cent or no rate increase will result in the following revenue shortfalls: Ra.te Increase Revenue Shortfall 3 Cent $1,159,384 2 Cent 1,372,732 1 Cent 1,618,657 0 Cent 1,843,205 The Utility has identified the following capital improvement cuts to accomodate the above revenue shortfalls: � � ; � ������� Janice Rettman October 23, 1991 Page 4 1992 Capita,l Improvement Budget Reductions No Ra.te Increase - SCADA system for Plant �a192,000 Data, processina • 127,400 East Side Sta.tion Building plus storage for landfill equipment 90,000 River conduit replacement 150,000 Pleasant La.�:e aeration 220,000 General Equipment: 755 size backhoe 75,000 Pavement breakers (3) i0,000 Trench shoring delivery system 25,000 4 pick up trucks (with trade-ins) 44,000 Backhoe 30,000 Pick up truck (with trade 62i) 15,000 Sedan (with trade 523) 10,000 Mail equipment 30,000 Retap services in Larpenteur from ' tlrona to Hamline 60,000 Replace rotovalves and controllers at Hazel Park Station 40,000 Lime disposal trials 30,000 Rebuild St. Anthony altitude valve pit 10,000 Replace West Side Sta.tion transformers 55,000 Yard surveillance system 7,500 Transmission and distribution mains 350,000 _ Water service connections 215,000 �1,845,900 One Cent Ra.te Increase - A one cent rate increase would generate approxima,tely $224,000 of revenue to the Utility. This rate increase would require the capita,l improvement reductions above under no rate increase with the exception of the following: SCADA system for plant $192,000 Ba.lance to replace general equipment 32,000 $224,000 � � _ �� �����o�� Janice Rettman October 23, 1991 Page 5 _ �tao Cent Ra.te Increase - A two cent rate increase would generate approxima.tely $469,000 of revenue to' the Utility. This rate increase would require the capita.l improvement budget reductions under a no rate increase with the exception of the following: SCADA system for plant 5192,000 Pleasant Lake aeration 220,000 Ba,lance to replace aeneral equipment 57,000 $469,000 Three Cent Ra,te Increase - A three cent rate increase would aenerate approximately �683,000 of revenue to the Utility. This rate increase would require the capital imgrovement budget reductions under a no rate increase with the exception of the following: ' SCADA system for plant 5192,OOQ Pleasant Lake aeration 220,000 River conduit replacement 150,000 Pavement breakers (3) 70,000 Ba.lance to replace general equipment 51,000 �683,000 _ 9) Provide an update on the most recent changes in the Federal drinking water lead standards. How does that impact St. Paul and does the City have to do more than wha.t's presently in the budget to comply with it? Atta,ched are excerpts from the August, 1991 edition of OPFLOW, a publication of the American Water Works Association, which provides infortnation on the newly adopted regulations for lead and copper in drinking water. � Saint Paul falls in the category of LARGE SYSTE�IS and is therefore required to begin monitoring tap water samples in January, 1992 (See TABLE 2, COMPLIANCE SCHIDULE FOR LARGE SYSTEMS on page 4 of the publica.tion) . The estima.ted cost of system monitorina is $65,000 and is included in the 1992 budget. In 1993, the Utility ma.y be required to conduct corrosion control studies if it fails to meet the lead action level esta.blished by the regulations. Estimated cost of the corrosion control studies is . . . ^. (��-���a�� Janice Rettman October 23, 1991 Page 6 $135,000 and would be provided in future budgets. 10) What are the reasons for the increases for the following: Page 1601, Object Codes 0828 and 0829 Paae 1620, Object Code 0290 Page 1640, Object Code 0299 . Page 1670, Object Code 0299 Paae 1601, Obiect Codes 0828 and 0829 The 1992 budaet request includes ��,200 in activity 28010 object code 0828 for the following lawn mowers which are to replace eYistin� mowers: Walk-behind self-propelled mow�ers (2) @ $1,700 each for �3,400 Push mowers (3) @ �600 each for �1,800 The mowers are necessar3r for the proper maintenance of the Utility's watershed areas. In addition, activity 28010 object code 0829, includes �71,500 for the follo�aing items: Pavement brea.kers (3) for a total of $70,000 Brush cutters (3) at $500 each for $1,500 The purchase of pavement breakers, �ahich are mounted on tractor backhoes, will minimize the need for pa.vement breaking by employees operating hand held jackhammers, a major source of ba,ck injuries in the - Utility work force. Brush cutters are necessary for the proper maintenance of the Utility's watershed areas. Pa�e 1620, Ob.iect Code 0290 The 1992 budget request includes $770,000 in activity 28181 object code 0290 for central service costs alloca,ted to the Utility. The dollar amount was ba,sed on a cost�allocation plan ma,inta.ined by the Accounting Division of the Depa.rtment of Finance and Management Services. The 1992 allocation. represents an 18.1% increase over 1991. The Utility is very concerned with the alarming rate of increase in these costs. Water Utility and Budget Office sta.ff will be entering into discussions relating to the determination of central service costs to be alloca.ted, the method used to allocate these costs and the rapid rate of growth of these costs. �� , �� � C,�y�aa�� Janice Rettman October 23, 1991 Page 7 Pa�e 1640, Ob.iect Code 0299 The 1992 budget request includes $131,850 in activity 28232 object code 0299 for the following purposes: . a) $126,550 to properly abandon and seal Board-owned wells no longer in service b} A $5,000 appropriation fee required by the Depa.rtment of Natural Resources to withdraw water from Centerville Lake The Minnesota Department of Health has directed the �dater Utility to properly abandon and seal 28 inactive wells at Centerville Lake. Proper abandonment of these wells will assure the acquifer in this area will not become contaminated by means of the inactive Board-owned wells. Pa�e 1670, Ob,iect Code 0299 The 1992 budget request includes �400,000 in activity 28331 object code 0299 to obta,in the s�rvices of outside contractors to provide the following work: a) $2�0,000 to paint an elevated tank b) $150,000 to repa.ir a crack in a low service reservoir 11) Are there any operational procedures to lower chemical costs used in the water treatment process? Will the current procedure of disposing of the salt properly generate any income? The Utility continually searches for alternative methods of water _ treatment and the chemicals used in the treatment process that will lower the costs of producing water without compromising water qua,lity. The Utility is currently carrying out a study to determine if the water treatment by-product (spent lime) is beneficial as a sealing agent or ba,rrier on lake bottoms to prevent the circulation of nutrients into lake waters. If successful, this project may result in creating a market for spent lime, thereby reducina current disposal costs to the Utility. These costs are estima,ted at $700,000 for 1992. cc: Committee Members Roger Goswitz _ Paula Maccabee Mayor James Scheibel Councilmembers Tom Dimond Bob Long Dave Thune Bill Wilson � � . - �- - � ,��F�'i��a� BOARD OF WATER COMMISSIONERS OF THE CITY OF SAINT PAUL WATER CONSERVATION PLAN . SUPPLY MANAGEMENT - - 1 . Metering GOAL: To accurately �measure and document water use to promote conservation through the following: . a) 100� metering of all consumptive users. b) Maintain an on-going metering program including testing, recalibration, repairing and/or replacing meters on a regular basis. - 2. Leak Detection and Repair and Water System Rehabilitation GOAL: To maintain the Board' s water system in good working order, minimize leakage and reduce water demand through the following: a) Maintain an on-going survey of the water . system for leaks covering all areas of the distribution system a minimum of once every 3 years . b) Repair all detectable leaks as soon as possible. c) Continue an on-going adequately funded system rehabilitation program for regular - maintenance and emergency repairs. EDUCATION, PUBLIC INFORMATION AND PARTICIPATION GOAL: To educate the public about wise, efficient and non-wasteful water use and enlist public support for a water conservation program through the following: a) Implement an on-going education program that includes water bill inserts, brochures and .the use of the city cable channel. b) Establish an on-going school education program on water conservation. c) Obtain outside consultant services (by means RFP) to work with neighborhood groups and businesses in water .. . _ . �,�9r��o�� conservation projects, conduct audits and evaluate water. conservation devices. . PROTECTION OF WATER QUALITY GOAL: To protect existing and future water supply - sources through the following: a) Carry out the Centerville well abandonment project. . b) Work with other governmental units to control the use of pesticides, . herbicides, fertilizers and other products which adversely affect water quality. c) Through the Vadnais Lake Area Water Management Organization, work to achieve a regional detention pond system to improve the quality of Vadnais Lake � water. d) Retain ownership and control of ' Board-owned lands in areas of reservoir lakes to protect critical water resources. � e) Educate the public about the relationship between land use and water quality. METROPOLITAN AREA CONCERNS a) Take a leadership role in working with the Minnesota Department of Natural Resources (DNR) , the Metropolitan - Council and other governmental agencies to reduce the unnecessary usage of water in both the metropolitan area and out-state Minnesota. b) Work with the Metropolitan Council and other agencies to develop and implement plans which will. assure a good quality and ample supply of water for the metropolitan area for the next 100 years. and out-state ..e.._ . - � i ' I I i I I ' ! I I � ` � r � ' � � I 1 - � � � � I /`��f� . � I ; _ � � � , � ; � , I � I I ' � � - i :i , � I - I � , , � A monthly publication of the American Water Works Association � Part 1—Overview ' • � How to Comply �11I ith the Lead and Copper .Rule . Frederick lV.Pontius ?ssociate Director,Regulatory Af'fairs awtiv� . Denver,Colo. . On l�1ay 7, 1991,the US Environmen- ' � �'- --- :,. . tal Protection Agency (tiSEPA) set final regulations for lead and copper in drin1:- "O5"��„��oaE„S,,,ER4cE�E,o E:oos„qE ing water. The new rule affects all community water systems and non- � . transient,noncommunity water systems. ■__. __�, � � :° - " The new rule was published June 7, � � ' �' - I �� - ., � 1991,in the Federal Regisfer. .�� . _ _ The regulations include � ;� ,,r: , : ' , z�. � • maximum contaminant level goals � -•�` (�ICLGs) for lead and copper; . � '`. ^�' • x• • • monitoring requirements and ana- � ''� -... .,,._, � —• "�- �"_::�:—•-• '` . lytical methods; � �ii, . • treatment technique requirements i ;;; that include corrosion-control treatment, source water treat- Fgure 1 llSEPA Depury Administrator Hank Habicht discusses health effects of ment, public education, and lead lead during a news conference on the Lead and Copner Rule in May. - service]ine replacement; � • utility record-keeping and report- In adults, lead can increase b]ood pres- trations in drinking ��ater are usually ing requirements; sure and interfere with hearing.At high too low to pose a health risk. public notification;and levels of.exposure, lead can cause The MCLGs for lead and copper, as � anemia, kidney damage, and mental well as related health effects and • variances and exemptions. retardation. Lead is classified as a prob- sources, are shown in Tabie 1 (page 4). The rule is technically complex and able human carcinogen by USEPA. A�ICLGs are optimal health-based tar- only a general overview of the new rule Lead and copper occur in drinking gets;however,they are nonenforceable. is provided here.Future articles will pro- �water primarily as a result of the corro- vide more details on monitoring and sion of pipes, solder, and other plumbing Monitoring analysis, corrosion-control and source materials in the home. �vo sets of monitoring requirements water treatment, public education, lead Lead levels in drinking water, how- are included in the rule,one for lead and service line replacement, and record- ever, are generally low. hlost childhood copper, and the other for other water keeping and reporting. e,cposure to lead is caused by contact quality constituents. Health Eff�ects and MCLGs with old paint, soil, and dust. USEPA Monitoring for lead and copper is estimates that lead in drinking water re uired eve six months. One monitor- Lead is a highly toxic metal.Exposure 4 ry to high levels of lead can interfere with contributes between 10 and 20 percent of ing period is equivalent to six months the formation of red blood cells, cause the total lead to which young children �two per year), covering the periods Jan- i premature birth or reduced birth weight, are exposed. uary through June and July through delay physical and mental development Copper is a nutritionally essential December. in babies and young children,and impair element, but causes gastric distress at mental abilities in children in general. high levels of exposure. Copper concen- (continued on page 3J � Le�ci �Zule Orders Ta Sam les Talcen at Hi h Rislc Homes ���a��� p � � � rcontinued/'ronc page 1� Corrosion-Control Treatment lime softening, coagulation/filtration, or � The starting dates for monitoring All large water systems(serving more an alternative at least as eft'ective. different-sized systems are: than 50,000 people)must conduct corro- PU��IC Education Janua 1992 Lar e s stems sion-control studies unless they can _ ry g y sho�v that corrosion control has already Systems that exceed the lead action _ b�0,000 customersJ le��el must deliver the liSEPA-de�•eloped � July 1992 bledium-sized systems been optimized. The studies are to compare the effectiveness of three Public education program to their cus- (>3300 to<_50,000 tomers within 60 days. The education customers) corrosion-control techniques: (1) pH July 1993 Small systems (<_3300 and alkalinity adjustment; (2) calcium program informs the public about the ' customers) adjustment;ar�d(3)the addition of phos- adverse health effects of lead and , . phate-or silica-based corrosion inhibitor. explains the steps people can take in Tap water samples are required at gased on these studies, large systems their homes to reduce their exposure to high-risk locations. Generally, these are recommend an optimal corrosion-control lead in drinking water. Public education homes with lead solder installed after treatment to the state. is required as long as the system esceeds 1982,homes�vith lead pipes, and homes For lar;e systems, optimal corrosion the lead action level. with lead service lines. control is defined in terms of the differ- �Vater must be allowed to stand ence between the source�.�ater lead level Lead Service Line motionless in plumbing pipes for at least and the 90th percentile tan water lead Replacement 6 h before sample collection. The first le�•el. If this difl'erence is 0.005 mg/L or litre of water from the kitchen or bath- S�stems that eYCeed the lead action room cold-water tap must be sampled. le��el after installing optimal corrosion- Systems may collect�samples or enlist "The new rule replaces rontrol and source water treatment must residents to collect samples. replace lead service lines. Seven percent The frequency of sampling for lead the existing interim of a system's lead lines must be replaced and copper is based on system S�Ze. maximum contaminant each year over a 1�-year period. If a ser- � Reduced monitoring is allowed for sys- 1eVEI II/ICL f0( I2aCI Of 'nce line is found to contribute less than tems that meet the action levels or � � 0.01�mg/L of lead to the drinking water maintain optimal corrosion control. 0.05 177(�,'/L'Wlffl a at the tap, then it need not be replaced, � � In addition to lead and copper sam- treatment teChn%qUe and may be counted towards the 7 per- pling, all large water systems and those �� cent minimum. small- and medium-sized systems that requirement. «ater systems usually do not own or exceed the lead or copper action level, must conduct additional monitoring , controi the entire service line. The ne�v for pH, alkalinity, calcium, conductivity, less, the system is considered to have Lead Rule requires a system to replace orthophosphate, silica, and water tem- optimal corrosion control. the entire lead service line, when perature. Monitoring results are used to Small- and medium-sized �vater sys- required,unless it can show that it does identify optimal conosion-control treat- tems that exceed the lead or copper not control the entire line. The water _ ment,and after treatment is installed,to action level must submit a recom- system.must offer (but not necessarily determine whether the system rema.ins mendation for optimal corrosion-control pay)to replace the portion of the service in compliance. treatment to the state. The state can line that it does not own. approve the recommended plan, require Treatment Technique alternative treatment, or require the Record-keeping and Reporting Requirements same corrosion-control treatment stud- The new rule specifies what records ies required for large systems. The new rule replaces the existing must be maintained by the system and interim maximum contaminant level A small- or medium-sized system is What reports must be sent to the state. (MCL)for lead of 0.05 mg/L with a treat- deemed to have optimized corrosion con- Reports include all monitoring results trol if the system meets the lead and ment technique requirement. The copper action leveIs for two consecutive and certification that each first-draw requirements are triggered by a sample collected by the water system lead action level of 0.015 m or a six-month monitoring periods. � S stems have 24 months to install the is one-litre in volume and, to the best of copper action level of 1.3 mg/L.If the y the sam ler s knowled e has stood concentration measured in the 90th per- corrosion-control treatment approved or P ' S > cent highest sample from customers' specified by the state. The state will motionless in the service line, or in the taps exceeds either of the action levels, specify water quality limits within which interior plumbing of a sampling site, for then some or all of the following actions the system must operate. at least 6 h. may be required: SOUI'Ce Water Treatment Public Notification � • optimal corrosion control, Systems that exceed the lead and cop- ;�iandatory health effects language is • source water treatment, per action level must sample source specified for notifying the public of viola- water(s). Based on these results, states tions to the rule. • public education, and may require treatment of source water � • lead service line replacement. using ion exchange, reverse osmosis, (continued on page 4) August 1991 3 � ! � � � chedules Based on S stem Size�'��a�� Le,�d/Eopper Compllance S y rcontinued/'rom page 31 cause an unreasonable risk to health, shown in Tables 2, 3, and 4. �tonitoring 1 and no reasonabie alternative source of is the first requiremen� Results of the ! Variances ancl Exemptions drinking water is available. As with monitoring determine additional actions Variances from treatment tech- variances, exemptions will include a by the system. niques may be granted if a system can compliance schedule and state-specified Thi,is thr(rst in a serees o(four articlrs - - demonstrate that it is lead-free. Esemp- requirements. drscribing the requiren�rnts oj the neu Lead tions are also allowed if the system is and Copper Rule. This complex rule,o�•er 100 unable to comply because of compelling Com�liance Sehedule pages in tengch in the Federal Regiscer.is o��- factors (this may also include economic The schedule for rnmpliance with the lined and simpli�ed in this series (or ensi� circumstances), the exemption will not ne�v rule is based on system size aS underslanding. Table 1 MCLGs, Action Leveis, Health Effects, and Sources of Lead and Copper MCLG Action Level Contaminant (mg/L) (mg/L)' Low-Level Heaith Efiects Sources in Drinking Water ' Lead 0.0 0.015 Chiidren: Corrosion of lead solder and Altered pnysical and brass and faucets and fixtures; mental devefopment; lead service lines (�bout 20 oer- interference with growth; cent of public water sysiems) • deficits in IQ, a�tention Source water (about 1 percent of span,and hearing; systems) interference with heme synthesis Women: Increa�ed blood . pressure;snoRer � gestational period � Men: Increased blood . pressure Copper 1.3 1.3 Stomach and Corrosion of interior household intestinal distress; and building pipes;source Wilson's Disease water (about 1 percent of systems) 'hleasured in lhe 90th percentile at the consumer's tap. Table 2 Compliance Schedule for Large Systems (>50,000 Peopfe) Date Action January 1992 Systems begin�tap water and distribution system monitoring January 1993 Systems complete initial tap water and distribution system monitoring ' July 1994 Systems complete corrosion-control studies and recommend treatment to state January 1995 State designates optimal corrosion-control treatment January 1997 Systems complete installation of corrosion-control treatment January 1998 Systems complete follow-up monitoring and submit results io state' � July 1998 State designates water quality limits for corrosion control 'Systems that continue to exceed action level begin 15-year fead service line replacement program. . Opflow 4