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We have followed the plan we communicated to the Council in January 2010 to explain the <br />necessary sewer rates by: <br />1.) Review what we accomplished on the CSO Long Term Control Plan (LTCP) the last 4 <br />years with the prior 4 step rate increase. We reviewed what is done so far and what is in <br />progress in the presentation 1 of 3, <br />2.) Next we reviewed the larger CSO LTCP and explained what comes next 2010 -2013 for <br />rates and capital that will produce and why it is prioritized in presentation 2 of 3 and <br />finally, <br />3,) We will explain the across the board rate adjustments needed for 2010 through 2013 <br />to continue the mandated CSO LTCP efforts (bottom line rate ordinance proposal for <br />2010 -2013 in presentation 3 of 3). We are prepared to highlight presentation 3 of 3 as <br />well as the fuff Rate Study and will have our rate expert consultant, John Skomp of <br />Crowe, present this to the Council. <br />We have provided much background so you can make a well informed though admittedly difficult <br />public policy decision in these challenging economic times, We heard Council concerns and <br />buffered rates by: <br />1.) No increase the first half of 2010, <br />2.) Reducing engineers and operations requests (Scenario 1) to a level that is progress from <br />first 4 years, but not as high requested --- $ 70 million is that buffered need level to show <br />progress to EPA and restraint to ratepayers in scenario 2 of the rate study —of which $60 <br />million raised through sewer rates and $ 10 million from other existing sources of capital. <br />3.) We reduced taxes paid as PILOT to current rate plus 5 % per year. <br />4.) We propose meeting the $ 70 million capital investment level by use of $ 10 million of <br />EDIT in a companion ordinance to follow to keep sewer rates increases to single digit and <br />annual increases under a dime a day for typical residential customer using 5,000 gallons <br />per month. <br />Regards, <br />4 <br />Gary A. Gilot, Public Works Director <br />CC Mayor Stephen J. Luecke <br />City Clerk John Voorde <br />Council Attorney Kathleen Cekanski - Farrand <br />�,... . , ... _; i <br />' I <br />