MEMORANDUM 09-70

Date: May 5, 2009

To: City Council

Thru: Walt Wrede

City Manager

From: Regina Harville

Finance Director

Subject: Sewer Rates – Resolution 09-48

In the original Resolution that was put forward to Council on 5/11/2009, the rates listed on line 40 are correct.

Lines 45 through Lines 50 were missed the first go around and the new rates were not applied to the scenario given for Sewer system dischargers only. Using the proposed rates, this should

have been computed as follows: $20 Customer Charge and $34.90 for Consumption Charge, for a total bill they will be receiving of $54.90.

Line 52 through Lines 59 which breaks down the charges for our Kachemak City Sewer customers were not considered either as the new rates were not applied to this scenario. Using the proposed rates, the KC customers will receive a bill for $20 Customer Charge and $34.90 for Consumption Charge, and $6.00 Septic service charge, for a total bill of $60.90.

The only price difference in these two scenarios is that the $6.00 septage cost went up from $4.39, and was to be adjusted with the new rate increase at the year end of 2008.

The reason that this was missed is that normally the language from lines 45 through lines 59 are listed in the rate schedule and broken out there for our customers. This is the first time that this has been listed as part of the rates and was over-looked.