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than 3,000 gallons per month. Multi family units used a total of approximately 750,000 gallons per month. It is likely that the actual usage on unmetered accounts is more than what is being charged. Consequently, we are recommending that the monthly fee for unmetered accounts is increased to reflect a higher use level. Recommendation #4: It appears that the City policy is to calculate the sewer bill at the water usage level. From discussions with staff, it appears that this practice has changed to allow for a discount on the sewer bill by using an average in the winter quarter to determine the charges for summer usage. Since this is a recent policy change, there isn't sufficient data to accurate model its financial impact. If 80% of the water usage is used to determine sewer revenues, on an annual basis,the decrease in sewer revenues is at least $40,000. City Council and staff should review the financial impact of this policy change when one year's worth of usage history is completed. One alternative to discounting the sewer bill for summer watering is to allow for separate irrigation meters which would only be billed for water usage. Sewer revenues would then be calculated during the year on actual water use. Recommendation #S: The Industrial Park is currently on the proposed capital project list. This is expected to cost$1,000,000,which is split between the water and the sewer fund. After extensive discussions with staff,the study does not contemplate any additional commercial users. The City has the option to finance the improvements in advance of an occupant or to finance the improvements in conjunction with build out. The City should carefully weigh the risk of incurring such a substantial cost before commercial entities are found. Recommendation #6: The waste water treatment facility appears to be at the end of its useful life. Accordingly, study costs and project costs have been included in the study. At this time, no replacement costs have been included for the water treatment facility. The remaining useful life of the water treatment facility and the water towers should be reviewed. The City should also undertake long range planning to determine if there are areas in the city that should be connected to the water and sewer system, such as around area lakes and if any of the private septic systems are failing or on the verge of failing and polluting ground water. i. 3060 Centre Pointe Drive (651)697-8500 Fax:(651)697-8555 Roseville,MN 55113-1105 http://www.ehiers-inc.com 4