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HomeMy WebLinkAbout20140407 UC Minutes UTILITY COMMISSION REGULAR MEETING MINUTES April 7, 2014 ANNUAL MEETING 1a. Election of New President MOTION by Harmsen to elect Speich as President of the Utility Commission meeting. Second b\ Mulhern. Ayes: 3. Nays: 0. Motion approved. 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 April 7, at 5:32 p.m. in the Council Chambers of the City Hall, 2875 145th Street West,Rosemount. President Speich called the meeting to order with Commissioners Mulhern and Harmsen,Public Works Coordinator Christine Watson,Assistant City Engineer Phil Olson and Recording Secretary Kladar attending. Mayor Droste entered the meeting at 5:56 p.m. ADDITIONS OR CORRECTIONS TO AGENDA None AUDIENCE INPUT None APPROVAL OF MINUTES Motion by Mulhern. Second by Harmsen. Motion to approve the minutes of the March 10, 2014 Utility Commission meeting. Ayes: 3 Nays: 0. Absent: 0. Motion carried. OLD BUSINESS None NEW BUSINESS 7a. Tower Lease Agreement—AT&T Public Works Coordinator Watson provided a summary of the staff report which outlines a Tower Agreement with Verizon for new cellular equipment on Connemara Water Tower. The Lease is the standard form which the City has used in the past with some revisions by the City and AT&T. The City's attorney has been working on specific language regarding the terms of the lease with AT&T. Article 3.02 addresses the rent and annual increase which has been a point of discussion between the 1 parties. AT&T had originally proposed a 3.5% annual increase but subsequently agreed to a 4% increase if the City would remove the Consumer Price Index (CPI) language. While the clear drawback to removing the CPI language would be the loss of a potentially higher rate,Watson noted that the CPI has not exceeded 4%in 22 years. In addition,AT&T does have the flexibility to terminate the lease at any time. Harmsen suggested a second alternative of removing the CPI language but with a 5% annual rent increase. Discussion ensued about leases with other companies. It was noted that other carriers could look at the terms of the AT&T lease and request to renegotiate their own lease. Mulhern said both parties have an option to terminate the lease but it is easier for the cellular companies to do so. It could potentially set a precedent for other carriers if the City removes the CPI language. Mulhern inquired about the site plan review and the number of antennas. Watson said it had been discussed with the parties handling for WSB and KL.M that it was to be a total of nine antennas. The City attorney wasn't comfortable with the carrier's insurance language under Article 4.01 and AT&T has agreed to remove the self-insurance language from the lease. Mulhern recommended that AT&T declare a site manager to be the contact person and include a phone number in the lease. AT&T should be required to keep this information updated. Mulhern inquired about the notifications of rent increases as outlined in Article 3. Watson advised the payments have all been punctual in the past and it hadn't been an issue. Mulhern noted that in Article 5.12 regarding primary use the lease states that"In the event the use of the Tower for water service is jeopardized because of antenna usage on the Tower". Mulhern recommends "installation of the facility" rather than just the tower itself. Discussion ensued about the other cellular carriers currently on the tower. Watson noted that Verizon recently added a tower and may need to be added to the AT&T lease. Mulhern stated that the first on one should pay more for the premium space and it may be necessary to address this issue in the future for other towers. The Commissioners recommended that the City propose a 4% annual rent increase which would include the CPI language in the lease or a 5% annual rent increase with no CPI language. Motion by Harmsen. Second by Speich. Motion to recommend to City Council to approve the Tower Agreement with AT&T Verizon for cellular equipment on the Connemara Water with either a 4% annual rent increase with CPI language or a 5% annual rent increase without CPI language subject to approval by the City attorney. Ayes: 3 Nays: 0. Absent: 0. Motion carried. 8. PRESIDENT'S REPORT President Speich did not have anything new to report. 2 EXECUTIVE DIRECTOR'S REPORT 9a. City Projects Update The attached project report was reviewed and Watson provided a quick summary. Assistant City Engineer Olson gave a summary of the status of the Bacardi Avenue improvement project. The Bacardi project will run concurrent with the Bella Vista development. Discussion was held about the 2014 street improvement project and the fact that the mix design used several years ago isn't holding up well. Mayor Droste brought up the investigation Woodbury is doing on their asphalt issues. Droste thinks collector roads should be addressed differently than other roads as they obviously have more use. Olson noted that there was a change in regulations and that the MNDOT mix was different and didn't perform well. This is a statewide problem as all cities use the MNDOT specs. The question is how to deal with the old pavement. It was noted that Lakeville didn't mill and overlay the old pavement but is just replacing it entirely. Olson advised it was still cheaper to mill and overlay a couple times as opposed to replacement. 9b. 2014 Well Pumping Report The attached report was reviewed. Commissioners noted increased pumping last month so pumping is about the same as last year. Mayor Droste raised the issue of water conservation and stated that in his opinion the Met Council may require the City to eventually use surface water. Accordingly, the Mayor doesn't think that the City should allow residents to purchase a second meter for irrigation as this doesn't promote conservation. Further, he noted that the City needs to figure out how to use grey water for parks. The City should be proactive in these as the aquifers are a regional issue. Mulhern would like to see the commercial and agriculture users pull from surface water. Harmsen thinks that the rate structure could be modified as a deterrent to resident to water their lawns less. The Mayor noted that other cities have shown a decrease in water use just by showing residents how their use compares to their neighbors. 9c. Set Next Meeting Agenda for May 12, 2014 There are currently no items on the agenda for next month's meeting. 3 ADJOURNMENT There being no further business to discuss the meeting was adjourned by President Speich at 6:24 p.m. Respectfully submitted, 1),L. Karin Kladar Recording Secretary 4