HomeMy WebLinkAbout15.F.6. East End Sewer Rate
JS: F-b.
CITY OF SHAKOPEE CO;NSfNT
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: East End Sewer Rate
DATE: March 3, 2004
Introduction
Council direction is needed for setting sanitary sewer rates
for properties in the east end of Shakopee.
Background
Properties in the Southeast end of Shakopee (Horizon. Heights
and Whispering Oaks) have a sewer interconnection with
Savage. Sewer flow from these properties goes to the Savage
system and the city pays Savage for collection/treatment.
The flow rate Savage currently charges is $2.59/1,000
gallons. The Shakopee flow rate charged to properties is
$1.60/1,000g which is the treatment cost of $1.34/1,000g
plus $0.26/1,000g to cover inflow/infiltration, billing
variances etc..
Alternatives
1. Treat the difference as an overall system cost and bill
the properties the same rate as other Shakopee properties.
2. Bill the properties the Savage flow rate 9f $2.59/1,000g
for treatment.
3. Bill the properties the Savage flow rate of $2.59/1,000g
for treatment, plus$0.26/1,000g to cover
inflow/infiltration and variances in differences in what we
bill to properties (based on water used) versus what we pay
Savage (based on sewer flow at the interconnect point) .
Recommendation
Alternative No.3. This provides the same rate structure as
all other properties, The difference is the amount paid to
Metropolitan Waste versus City of Savage.
Action
Direct staff to prepare an ordinance amending the Fee
Schedule to charge properties using the Savage sewer
interconnects the flow rate of $2.90/1,000 gallons of water
used.
~U
G:d g oxland
Fina ce Director
g\finance\budget04\savagefee