Title
Environmental Commission Resolution to Approve the City of Ann Arbor's Comprehensive Water and Wastewater Cost of Service and Rate Design Study and Recommend Adoption by City Council
Memorandum
City staff and consultants have developed a Comprehensive Water and Wastewater Cost of Service and Rate Design Study. The findings are being presented to the Environmental Commission and staff is seeking a resolution in support of the study findings and proposed rate structure.
Staff
Prepared by Lynne Chaimowitz
Memorandum
Whereas, Ann Arbor's prosperity is due, in large measure, to the infrastructure investments made by previous generations. However, that system is under stress;
Whereas, Our drinking and waste water pipes are, on average, 50 years old and nearing the end of their useful life;
Whereas, Over the last 10 years, Ann Arbor invested $150 million to upgrade the wastewater treatment plant and over the next 10 years, a similar investment in the drinking water treatment plant and associated delivery infrastructure will be required;
Whereas, Staff has a blueprint that will guide us forward and address these issues;
Whereas, the first step in this blueprint is a Comprehensive Water and Wastewater Cost of Service and Rate Design Study;
Whereas, The City retained Stantec Consulting Services to conduct this study and provide their expertise in utility engineering and financial services;
Whereas, Stantec completed the cost of service study, which involved determining the requirements for maintaining our systems, allocating the costs among the difference customer types, and designing a rate structure based on community objectives and legal requirements;
Whereas, The City of Ann Arbor formed an Advisory Committee to provide public feedback on the study;
Whereas, The purpose of this Advisory Committee was to engage the community in a discussion regarding the City's water and wastewater financial needs and make recommendations on proposed changes to the City's r...
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