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HomeMy WebLinkAbout4. Utility Commission Minutes July 8, 2013UTILITY COMMISSION REGULAR MEETING MINUTES July 8, 2013 CALL TO ORDER Pursuant to due call and notice thereof the regular Utility Commission meeting of the City of Rosemount was called to order on July 8, 2013 at 5:30 p.m. in the Conference Room of the City Hall, 2875 145th Street West, Rosemount. President Harmsen called the meeting to order with Commissioners Mulhern and Speich, Rosemount Mayor Droste, City Administrator Johnson, Finance Director May, Executive Director Brotzler, Public Works Coordinator Christine Watson, and Recording Secretary Kladar attending. ADDITIONS OR CORRECTIONS TO AGENDA President Harmsen inquired whether the City currently has a private hydrant policy. Executive Director Brotzler replied that the City did not and this topic was added to the new business agenda. AUDIENCE INPUT None APPROVAL OF MINUTES Motion by Speich. Second by Mulhern. Motion to approve the minutes of the April 8, 2013 regular Utility Commission meeting. Ayes: 3 Nays: 0. Motion carried. OLD BUSINESS 5a. Generator Upgrades As discussed at the March and April Utility Commission meetings, City staff has been researching the impacts of the new EPA rule for Reciprocating Internal Combustion Engines National Emission Standards for Hazardous Air Pollutants (RICE NESHAP). Executive Director Brotzler provided a summary of the staff report. Staff is requesting Commission authorization to pursue one of the following options: • Utilize Water Utility funds to pay for necessary generator upgrades and /or purchase new generators in order to remain on the Xcel Energy ERS program • Withdraw from the Xcel Energy ERS program and maintain the generators as they are Brief discussion was held regarding maintaining the generators to be used on an emergency backup basis and the fact that the City can re -enter the Xcel peak shaving program in the future if necessary. Motion by Mulhem. Second by Harmsen. Motion to withdraw from Xcel peak shaving program. Ayes: 3 Nays: 0. Motion carried. NEW BUSINESS 6a. Hydrant Meter Procedures Executive Director Brotzler provided a summary of the staff report. Staff is recommending the following: 1. Charge an annual administrative fee of $50 to each contractor for the use of the City's hydrant meters. 2. Increase the deposit to $2,000 to cover the replacement cost of a meter and assumed cost of water usage. 3. Limit the length of time a contractor is allowed to possess a meter to 90 days. 4. A Hydrant Meter Permit Application will be made available online, allowing the utility department to approve the use of a given hydrant meter. 5. Using a different colored hydrant meter to allow Staff to recognize unauthorized hydrant usage at a glance may also prevent water theft. Discussion ensued regarding the use of hydrant meters. The Commissioners didn't see the need to extend the use period beyond 90 days noting that making the time period too long allows the contractors to use the City's hydrant meter in lieu of a permanent connection fee. Motion by Harmsen. Second by Speich. Motion to adopt the above hydrant meter policy. Ayes: 3 Nays: 0. Motion carried. 6b. Utility Billing Policy Finance Director May provided a summary of the staff report. Finance is recommending discontinuing use of the past due notices which would save staff time and expense. Staff doesn't track the success ratio of the past due notices but doesn't think it is significant. Mr. May also advised that the percentage of online payments has been increasing every month. Staff is recommending approval of the updated Utility Billing Procedures. 2 Motion by mulhern. Second by Speich. Motion to approve the updated utility billing procedures. Ayes: 3 Nays: 0. Motion carried. 6c. 2014 Utility Budgets Executive Director Brotzler provided a summary of the staff report. Staff is recommending the Utility Commission to recommend City Council approval of the 2014 utility budgets. Mr. May suggested that an amount of $2,000 be added to each of the three funds to cover credit card and online fees for a total of $6,000. Motion by Harmsen. Second by Mulhern. Motion to recommend to City Council approval of utility budget with the addition of $2,000 to each fund for online and credit card use fees for a total of $6,000. Ayes: 3 Nays: 0. Motion carried. 6d. 2014 Water & Sewer Rate Model Public Works Coordinator provided a summary of the staff report. Staff is recommending the Utility Commission to recommend City Council approval of the water and sewer utility rate changes for 2014 which include a 5% rate increase. Commissioner Speich inquired about residents' feedback or complaints about the tiered rate. Mr. May advised nothing more than they normally receive. It was noted that the pumping rates are currently down from last year. Mr. Brotzler suggested a future option could be for the upper tiers to carry a higher percentage of the increase. The lower water users' increase could be more moderate. Mr. Brotzler doesn't think that the current rates are a financial constraint to the amount of water residents' use and rates would have to be significantly higher for people to do anything different regarding water use. The City's water treatment facility is tentatively slated for construction in 2016 with design plans starting next year. There are potentially one or two positions to be added with the water treatment facility but this will be further defined in the future. There may be additional resources needed for park and facility maintenance due to park growth. Mr. Brotzler stated that there are currently no significant changes anticipated with MCES but the City hasn't received information about the 2014 rate. This is the most volatile line item and beyond the City's control. Motion by Speich. Second by Harmsen. Motion to recommend to City Council approval of water and sewer utility rate charges for 2014. Ayes: 3 Nays: 0. Motion carried. 6e. Commercial Hydrants President Harmsen raised the issue of whether the City had a policy for hydrants that are privately owned. Other cities charge a fee for the maintenance of these hydrants. Mr. Brotzler replied that the City currently does not have such a policy and the City maintains all hydrants. Discussion ensued about the history of the maintenance of private hydrants. Several years ago there was an apartment fire in Burnsville and the hydrants didn't work properly. This led to a drafting of an ordinance regarding maintenance of fire hydrants. It was noted that some surrounding communities such as Eagan and Burnsville have hydrant policies. These cities are larger and have more commercial and industrial areas and apartments. Currently Rosemount doesn't have the same volume but as growth continues, adopting such a policy could be considered in the future. The City of Rosemount currently flushes and maintains all hydrants on a regular basis and is in the process of mapping the private hydrants. The fire code gives the City the right to access and inspect all hydrants. A few years ago the City notified those private hydrant owners that the hydrants were their responsibility and defined where the City's maintenance ended and theirs began. If a hydrant needs repairs the City tags it as out of service and the owner has to pay to have it repaired. 7. PRESIDENT'S REPORT President Harmsen did not have anything new to report. EXECUTIVE DIRECTOR'S REPORT 8a. City Projects Update Executive Director Brotzler referred to the project update that was included in the packet. He noted that the 2013 street improvement project was essentially complete. There was a brief discussion about the upcoming closure of Highway 3 and detour for the underpass work during the first weekend in August. Mr. Brotzler noted that there are several development projects under construction. Mr. Brotzler noted that he has received several calls recently about the storm water utility fee asking what's it's for and why residents have to pay it. It was noted that this would make good information for a future newsletter article. 4 8b. 2013 Well Pumping Report Pumping is down from last year given the rainy spring. Mayor Droste talked briefly about the Met Council listening sessions this spring and he noted that water is always the item with highest comments and concerns. In the Mayor's opinion, conservation will be an important issue going forward and likely be addressed by the Met Council. A brief discussion was held about second meters and the possibility of charging a different rate for that water use. Mr. May noted that requests for second meters are reasonably steady and that the residents are typically new homeowners. Mr. Mulhern stated that at a recent conference water quality aging was stressed and thinks that mixers are going to be more common in the future to turn over the water. The mixers push fresh water toward water that hasn't been moved. This could mean less chlorine use in the future. All of these items will need to be considered when discussing any future water treatment facility. 8c. Set Next Meeting Agenda for August 12, 2013 Review and authorize scope of services and fee for MS4 permit which is due at the end of the year. ADJOURNMENT There being no further business to discuss and upon a motion by Harmsen second by Mulhern, the meeting was adjourned at 6:30 p.m. 5 Respectfully submitted, Karin Kladar Recording Secretary