Metropolitan Council Environmental Services A Clean Water Agency Presented to the Environment Committee September 22, 2009 Rate Task Forces Status Jason Willett, ES Finance Director

2 Rate Task Forces I.Demand Charge Task Force a)Develop recommendations for Demand Charge details of continual excessive I/I to metro disposal system b)Review timing and other implementation factors for new charge II.Reserve Capacity/SAC Task Force a)Evaluate current and proposed methods of reserve capacity estimation and recommend method (tentative) b)Evaluate fees for reserve capacity funding (SAC) and recommend changes and implementation methods (tentative)

3 I. Demand Charge Status Appointment by Council: Aug. 26, 2009 Wendy Wulff, chair Task Force meeting schedule: — Sept. 14, 2009 — Nov. 9, 2009 — Jan. 11, 2010 — March 8, 2010 — May 10, 2010 Other: — June 2010:Municipal Customer Forums — July 2010: E.C. to authorize public meeting — Sept. 2010:Public meeting — Oct. 2010:E.C. and Council adoption (possible policy plan change)

4 Demand Charge Task Force Agenda: Sept. 14, 2009 Introductions MCES Overview Task Force Charter & Schedule Review of prior I/I programs Review of Council Policy for Demand Charge

5 Demand Charge Task Force Agenda: Nov. 9, 2009 (tent.) Recap of presentations and identified questions/issues Review of: — Other Demand Charge systems — MCES meter system — MCES Interceptor Capacity Analysis — MCES I/I work on regional pipes

6 II. Reserve Capacity/SAC Task Force Appointments expected by Council: Oct Peggy Leppik, chair Meeting schedule (tentative) — Every other month (alternating months with Demand Charge Task Force) on first Monday of those months beginning Oct. 5, 2009 — 6-9 meetings, concluding by end of 2010

7 Reserve Capacity/SAC Task Force Participants (tent.) Council members: Chair Leppik and Roger Scherer Specific municipalities to be invited from City Administrator, Finance, Public Works, Government Affairs or Building/Inspection Directors: — Central cities: Minneapolis, St. Paul, Bloomington — Growing cities: Maple Grove, Blaine, Shakopee — Smaller cities: Chaska, Hugo, Rosemount Other stakeholders: — Businesses: Summit Brewing, Ecolab, Vision-Ease Lens — Business associations: Restaurant Association, BATC — Other permitting authorities: University of MN

8 Reserve Capacity/SAC Task Force: Guiding Principles (tent.) MCES fees for wastewater must fully fund wastewater services of the Council (planning, operations, maintenance, debt service, betterment and acquisition costs) As much as reasonable, maintain a cost of service approach with MCES rates (fees should charge costs incurred by MCES to the classes of customers for whom MCES incurs the costs) Fee system should assure adequate financial reserves for protecting the Council’s bond rating and for changing economic conditions Recommendations should work within existing statutory authority as preferred approach

9 Questions/Concerns