After several months of reworking, the Albert Lea City Council on Monday unanimously approved a new city sewer and water billing structure.

Generally, residential customers will see a 3 percent increase in their sewer and water bills, and average commercial users will also see a 3 percent increase.

Commercial users with a 3-, 4- or 6-inch meter, however, will see a 13.1 percent increase from the current rates, while industrial users will see a decrease from the 2008 rates, though not the 2009 rates.

A handful of commercial users will see increases by more than 25 percent in their bills.

City Engineer Steven Jahnke said the new structure comes after a St. Paul firm researched rate setting and presented its findings to the city.

In the firm’s study, it found the following: first, commercial users had been significantly underpaying for many years; second, after Farmland Foods burned and left, the surcharges for the industrial users were out of whack; third, the firm felt a fixed charge should be based on capacity of the meters.

Councilor Al Brooks, who motioned to approve the new structure, explained the process the council has been through to arrive at the new structure.

He said he was at the point where he felt like the council needed to make a decision.

“I think ultimately we’ve been struggling to find a proper rate that best satisfies everybody …” he said. “But I’m at the point now where I don’t know what else we could do without shifting the cost somewhere onto something else.”

The numbers had already been shifted because of a concern that commercial users with larger meters were getting more of an increase than others. The old rates, however, were set in 1983, revised in 1994, increased and decreased through the years and were criticized for being rather arbitrary.

The rates for the larger meters are actually about half of what they were originally proposed, and there is an increase in the smallest meter, which is typically residential.

Councilor Ellen Kehr said she has been vocal throughout the process and thanked city staff for their work and changes after receiving council input.

“I don’t think this is perfect, but I agree with Councilor Brooks — I don’t think we’re going to get to perfect,” she said. “This has taken a lot of time and a lot of input from a lot of people.”

Here’s the new basic service charge for water based on meter size for residential and commercial users:

5/8-inch meter: $8.35

 3/4-inch meter: $12

1-inch meter: $20

1 1/2-inch meter: $40

2-inch meter: $64

3-inch meter: $82.25

4-inch meter: $131.25

6-inch meter: $246.75

Consumption rates for water are the following:

0-100,000 cubic feet: $9.50

100,001-500,000 cubic feet: $5.35

500,001+ cubic feet: $5

Under the sewer charges, city staff reduced revenue by $180,000.

Here’s the new basic service fee for sewer charges based on meter size for residential and commercial users:

 5/8-inch meter: $15.30

3/4-inch meter: $22.95

1-inch meter: $38.25

1 1/2-inch meter: $76.50

2-inch meter: $122.40

3-inch meter: $161.05

 4-inch meter: $293.75

6-inch meter: $485

The proposed sewer unit charge per 100 cubic feet for commercial and residential is $1.95.

Councilor Vern Rasmussen pointed out how the council decreased revenue for the sewer fund by $180,000 because of the input received from the public.

“We did listen,” he said.

In other action, the City Council:

Approved on a 6-1 vote a request from the Shell Rock River Watershed District to siphon up to eight inches of water from Fountain Lake to Albert Lea Lake over the winter months in case of low oxygen levels in Albert Lea Lake.

The project is one the Watershed District is working on with the Minnesota Department of Natural Resources.

Watershed field technician Andy Henschel said the process would only be used for emergency purposes only. The contract is good for somewhere between three and five years, he said.

The DNR requires that 75 percent of lakeshore owners consent to the plan prior to implementing it.

Henschel said the method has been used by the DNR before successfully and is probably one of the best and safest ways to prevent a fish kill.

Councilor Ellen Kehr voted against the request.

 Approved the Teamsters Local 320 union for both dispatchers and a majority of police officers.

The two agreements, good for a year, show a 0 percent cost-of-living wage increase, with eligible employees receiving a step increase mid-year.

City Manager Victoria Simonsen said the employee’s contribution toward health insurance would remain the same with the city picking up 100 percent of the increase.

Contributions to health savings accounts will be made quarterly instead of annually.

The Teamsters contract did not include anything about saving one police position in light of budget cuts.

Mayor Mike Murtaugh said the one officer who received his pink slip last week will work through Feb. 7.

“We still have some time between now and then if the union would like to offer other concessions,” he said. “Personally I am hoping we will arrive at something that will mean he will stay on as an employee.”

 Approved the preliminary and final plat for the Interstate 35 and Interstate 90 Business Park.

The subdivision includes four lots of about 20 acres each that are zoned Interstate Development District, which will allow multiple land uses, ranging from high density planned residential to limited industrial.

Authorized the extension of the voluntary unpaid leave policy for the city. The policy will now go through 2010.

It is for a city employee to use to take a day off when he or she doesn’t have the vacation or sick time, Simonsen said.

In 2009, about $10,000 was saved by the policy.

Approved an amendment to Chapter 66 of City Code referring to utilities.

The major changes to the ordinance include the removal of articles pertaining to storm water utility and public lighting utility, along with the addition of a section of storm water infiltration and inflow and illegal connections.

The ordinance identifies that an inflow and infiltration surcharge will be added to utility bills each month for properties that have been given a compliance date but have not made a repair to their sewer line.

Other changes include adding a delinquent charge to bills that are unpaid on the 20th day following billing, instead of the 30th day, along with the ability to shut off services to abandoned, foreclosed and vacant properties.

Likewise, consumption rates for those eligible for financial assistance were increased from 1,000 cubic feet to 1,500 cubic feet per quarter.

 Authorized bond payments for 2010.

 Adopted council procedures for 2010. The only change was to allow three minutes and one topic for the public forum instead of two minutes and one topic.

 Approved a three-year towing contract with Allen’s Tow-n-Travel to provide for towing, impounding and storage of automobiles for the city’s involuntary tows.