Agenda - Council - 01/23/2018 - Laserfiche WebLink

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was willing to participate. City Staff asked for an extension to allow Staff to present this information to advisory boards and committees before requesting City Council approval on January 23rd, 2018 to participate in the project. The Met Council approved the extension. On December 18, 2017, Staff provided an update on this project to the Environmental Policy Board (EPB). The EPB provided some generalized feedback on this potential opportunity. There was general consensus supporting the `survey' portion of the project, but a concern was raised regarding the results of the survey. More specifically, the EPB raised the issue of equitable application of results. They would not want to see the results only applied to Ramsey or the other communities that participated as this could create an unfair burden on water users in Ramsey, such as increased water costs. On January 16, 2018, the Public Works Committee (PWC) discussed the Metropolitan Council's request to participate in the Metropolitan Council Water Efficiency Potential Project, and discussed the feedback received from the EPB. After some discussion as to whether this project would ultimately be beneficial for the City, the PWC ultimately recommended City Council approval to participate in Metropolitan Council's Water Efficiency Potential Project by a vote of 2 (for) to 1 (against). However, this vote was contingent on confirmation by the Metropolitan Council that the results of the project will not adversely impact the City of Ramsey, including its businesses and residents. On January 17th Staff received the following response to the concerns discussed by the EPB and the PWC via email from Brian Davis with the Metropolitan Council; "The Metropolitan Council has no statutory authority regarding water use restrictions or water supply capital improvements for any municipalities. Our work is conducted under the auspices ofMinnesota Statute 473.1565 (a copy of this statute is attached to the case). We cannot impose any water use restrictions or water supply capital improvements on any municipality. Furthermore, this project is not intended to support any such restrictions. Many communities have raised the issue of revenue reductions resulting from water conservation. This project assesses the economic potential of whether an aggressive water conservation program could reduce the community's expansion of water supply wells to meet future residential needs. The focus on "economic potential" is a critical point. If the summer peaking factor is reduced, will the existing wells be sufficient to meet the future water demand as population increases? If so, how much money would be saved by not having to install and maintain additional water supply wells? Such savings could translate to lower water rates over the long run, which is a "win " for all parties. Conversely, if the costs of an aggressive water conservation program exceed the financial savings resulting from a reduction in the number of new wells needed, then it would not make financial sense for a community to pursue such a program. We recognize that communities are not all the same. Instead of a one -size -fits -all approach to water conservation, a more practical approach is to tailor such activities to the characteristics of each community. Our project will help growing communities make financially sound long-term decisions regarding water supply management. The information gained from this project could be useful for a utility when deciding whether or not to pursue an aggressive water conservation program." Notification: Notifications are not required for this case. Observations/Alternatives: Observations: Staff is hopeful that the response provided by Brian Davis with the Met Council will adequately address the concerns raised by EPB and PWC members, and will allow the City Council to approve City participation in the project. Based on the information provided to date, Staff is hopeful that the project may yield results that will allow the City to save costs on future water supply infrastructure.