Agenda - Council - 04/09/1996 - Laserfiche WebLink

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Water Cgnservation The City of Ramsey already implements quite stringent water conservation policies, primarily due to the lack of capacity in the past. This section might be expanded to incorporate what Anoka's policies are. Compensation Up until this agreement was presented, the City of Ramsey was treated as any other commercial/industrial customer. The agreement specifically states that the City of Ramsey can purchase up to 1 million gallons of water a day from the City of Anoka. The schedule provided in this document does not reflect that. It is standard in most utilities to charge a minimum monthly fee to cover administration costs of metering and billing services. The schedule as it is presented incorporated this practice up to a point. The schedule goes on to impose penalties, over and above the monthly minimum, for varying levels of water purchases on peak days. It is staffs opinion that the City of Ramsey should be charged as regular industrial customer up to the 1 million gallons a day and, if we exceed that, then penalties would be imposed. The manner in which this agreement is written - the City of Ramsey is penalized any time purchased water exceeds 250,000 gallons per day. The original agreement provided that if there was not water usage during a given month, then the $150.00 would not be charged. This is not the case with the new agreement. We would pay a minimum of $1,800 to the City of Anoka for 1996, even if we didn't use any water. Staff Recommendation: It is staffs position that this agreement should be addressed by City Attorney Bill Goodrich for legality and consistency. It is apparent that the City of Ramsey will rely heavily on the excess capacity that can be purchased from the City of Anoka, thus it is important that we come to an agreement so that the availability remains. Council Action: Based on discussion and comments from City Attorney Bill Goodrich. Reviewed by: Finance Officer City Engineer Parks/Utilities Coordinator Copies also distributed to: City Administrator CC: 04/09/96 ! I I I I I I i I I I I I I I I I I I