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HomeMy WebLinkAbout4.a. August 14, 2017 Minutes UTILITY COMMISSION REGULAR MEETING MINUTES August 14, 2017 CALL TO ORDER Pursuant to due call and notice thereof the regular Utility Commission meeting of the City of Rosemount th was called to order on August 14, 2017, at 5:30 p.m. in the Conference Room of the City Hall, 2875 145 Street West, Rosemount. Commissioner Connolly called the meeting to order with Commissioner Demuth, City Administrator Martin, Public Works Director/City Engineer Brian Erickson, Public Works Coordinator Christine Watson, Finance Director Jeff May, and Recording Secretary Erin Fasbender. ADDITIONS OR CORRECTIONS TO AGENDA None AUDIENCE INPUT APPROVAL OF MINUTES Motion by Demuth Second by Connolly Motion to approve the minutes of the June 19, 2017 Utility Commission meeting. OLD BUSINESS None NEW BUSINESS 6.a. Water, Sewer and Stormwater Rate Review Watson presented the models for the annual review of the Water, Sewer, and Stormwater Utility Fund activity. Watson highlighted any changes within the model for 2018 and beyond. Based on staffs’ review, the proposed changes will result in a net increase of 4.7% to the water portion of the utility bill for the average residential customer. A few highlights mentioned were:  Proposing a 0.5% annual meter maintenance fees beginning in 2018 for all meters larger than ¾” (typical meter size). The revenue from meter maintenance fees should offset the cost of meter replacements. The percentage was chosen randomly and would be a starting point going forward. The impact of this is shown in line 35. Those residents who have two meters, would receive two maintenance fees.  The other major impact is the water tower maintenance increase for Chippendale and Bacardi Tower. Watson also stated starting in 2020; we are adding $488,000/year to existing debt to cover 20% of a water treatment plant. May mentioned if we are in agreement that we need a water treatment plant eventually, than this is the correct path to be taking with the rates. Essentially we are proposing a 3% rate increase which is a smaller increase than what we were initially proposing (4%). Demuth commented that the City of Lakeville offered to give a tour of their Water Treatment Facility; although mention was made the facility in Prior Lake may be more comparable to what Rosemount would need. Droste is questioning when we should be applying for a bond for the Water Treatment Facility and Martin made mention that next year is a bonding year at the legislator and this is something that should be looked into further. As May stated we will have to have at least one water treatment facility plant if not more at the rate Rosemount looks to grow. Sanitary Sewer rates are very similar except we don’t have the tiers. We are proposing a 6% increase on the usage rate through 2020, then 2% annually thereafter. One line item to highlight is the $210,000 update to Lift Station 4 which includes piping, check valves, calibration, control panel, and possibly submersible pumps. Storm water was discussed for the first time last year. Now, we have a model that we are able to better evaluate. The annual increase was 5% from 2002 through 2016, and 4% in 2017. Based on review of this model, a 3% annual increase beginning in 2018 should be sufficient to maintain a feasible year-end balance. There are several stormwater maintenance and improvement projects that need to be completed which these funds would go towards. Motion by Connolly Second by Demuth Motion to recommend to City Council approval of Water, Sewer and Stormwater Rate Changes for 2018. 6.b. 2018 Utility Budgets Watson discussed the redline version that was submitted to Finance Director May of the 2018 budgets for water, sanitary sewer and stormwater. Watson highlighted the numbers that cause the bigger changes.  Chippendale Water Tower Updates cause a 3.63% increase to the Water Utility fund.  Upgrades needed at Lift Station 4 cause a 5.31% increase to the Sewer Utility fund. Budget will be sealed at the end of September and staff will continue to work through it until the end of the year. If any drastic changes are made staff would update the Commission. Demuth brought up the concern of if we don’t receive the grant money for the 2017 Metropolitan Council Green Infrastructure Pilot Program, should we consider putting in this fee in a future budget? Watson stated it hasn’t been determined whether or not the project is needed in the future, this still needs further evaluation from staff and council. May confirmed an action can still be taken tonight and should the grant be awarded to us, Utility Commission could make an amendment. There would be time to adjust as the grant is set to be awarded by August 31, 2017. If there are no further comments from the utility commission than the utility commission would have no further discussions regarding the 2018 Utility Budgets. If there are changes or updates in the future from staff or council, we can then make any adjustments before the final budgets are set. Motion by Connolly Second by Demuth Motion to recommend to City Council approval of the 2018 Utility Budgets PRESIDENT’S REPORT None EXECUTIVE DIRECTOR’S REPORT 8.a. City Projects Update  Well house 16 is in design process. Anticipated timeline is to bring this to council on September 5.  2017 SIP – Shannon Parkway is now open and construction for Shannon Hills has taken place.  Community Center anticipated paving date is early next week. nd  132 Street is being constructed currently as well. 8.b. 2017 Well Pumping Report Water usage is slightly higher than where we were last year at this time. Mayor suggested adding a column which shows the amount of rainfall during the recorded time period as this may help better analyze the usage. 8c. Set Next Meeting Agenda for September 18, 2017 OTHER UPDATES Demuth brought up a couple suggestions on ways to promote water conservation. Demuth received a request from council member Nelson to see if staff can do a targeted mailing sending out irrigation rebates to residents who have a second meter, HOA’s, and new homeowners. Staff will review and see if this is practical to do. Staff also mentioned how we have created fliers of showing low, average and high water users. Staff will look to include this flier in the quarterly newsletter beginning in 2018 in hopes to bring awareness to each resident’s water usage. Demuth is also interested in seeking out the possibilities of monthly billing vs. quarterly, how to not receive an envelope when residents opt out of paper billings and how to get more residents on board with paperless billing. ADJOURNMENT Connolly adjourned the meeting at 7:00 p.m. Respectfully submitted, Erin Fasbender Public Works Secretary