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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