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HomeMy WebLinkAbout20180820 UC Minutes UTILITY COMMISSION REGULAR MEETING MINUTES August 20, 2018 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 August 20, 2018, at 5:31 p.m. in the Upper Conference Room, City Hall, 2875 145th Street West, Rosemount. Commissioner Demuth called meeting to order with Commissioners Cahn and Nelson, Mayor Droste, City Administrator Martin, Finance Director May, Public Works Director/City Engineer Erickson, Public Works Coordinator Watson and Recording Secretary Barikmo. ADDITIONS OR CORRECTIONS TO AGENDA None AUDIENCE INPUT APPROVAL OF MINUTES Motion by Nelson Second by Demuth Motion to approve the minutes of the July 16, 2018, Utility Commission meeting. Motion carried. PUBLIC HEARINGS OLD BUSINESS NEW BUSINESS 7.a. Water, Sewer, and Storm Water Rates Watson presented a review of the models for the Water, Sewer, and Stormwater Utility Fund activity. Watson highlighted the changes within the model for 2019 and beyond. WATER RATES The proposed changes will result in a net increase of 2.6% to the water portion of the utility bill for the average residential customer. A few highlights mentioned were:  Proposing a 2% annual increase to the meter maintenance fees beginning in 2018 for ¾-inch meters and 0.5% increase for all other meter sizes. The revenue from meter maintenance fees should offset the cost of meter replacements. The residents who have two meters pay two separate maintenance fees.  A full-time utility maintenance employee is proposed in 2021 and a full-time water treatment facility operator was moved from 2019 to 2022. Watson also stated that starting in 2022, the water treatment plant debt will be paid 75% from Utility fund and 25% from Core/CIF funds. May and Droste discussed the pros and cons of installing smart meters to all homes. Demuth proposed having companies that sell “smart” water meters come in and present their products and technology to the Utility Commission and provide cost estimates. Nelson and Cahn agreed to have companies come in and present. Administrator Martin suggested that staff meet with the companies to reduce the amount of time that is taken up during a meeting. Demuth added that the Metropolitan Council would also like to come in and speak with the Utility Commission within the next year. STORM WATER RATES Stormwater rates are proposed to increase 3% annually, which should be sufficient to maintain a feasible year-end balance for the next 10 years. One of the biggest additions to the stormwater model includes a full- time stormwater specialist position in 2019 ($100,000 for salary and benefits). This person will be responsible for ensuring compliance with all local, state and federal requirements regarding stormwater management. SEWER RATES Staff is proposing a 6% increase on the sewer usage rate through 2020, then 2% annually thereafter. One line item to highlight in 2019 is the $210,000 to upgrade Lift Station 4 with submersible pumps, electrical updates, etc. Staff presented an alternate sewer model which phases out the fixed charge and bills for sewer based on usage only. The commissioners agreed it was an appropriate way to begin billing for sewer. Because of the significant change, staff suggested they discuss it further with City Council at a future Work Session. Staff will update the water and sewer models with a phase-out plan and present it to City Council at the October Work Session. Staff will discuss the results of the Work Session with the Utility Commission in November. Motion by Nelson Second by Cahn Motion to recommend to City Council approval of Water, Sewer and Stormwater Rate Changes for 2019, after discussing the phase out alternate with City Council at a future Work Session. Ayes: 3 Nays: 0. Motion Carried. 7.b. Proposed 2019 Utility Budgets Watson discussed the redline drafts that were submitted to Finance Director May of the 2019 budgets for water, sanitary sewer and stormwater. Watson highlighted the following items:  The substantial decrease to the Water Utility fund is primarily due to the planned painting of the Chippendale water tower in 2018. Due to delays in the project, the painting will actually occur in 2019; however, since the money was budgeted in 2018, it was not necessary to show it again in the 2019 budget. Future painting of towers is scheduled in 2025 (Bacardi) and 2027 (Connemara).  Money has been added to the Sewer Utility budget in 2019 to begin a sanitary manhole maintenance program. There are currently 278 sanitary manholes in need of repair, maintenance, or new covers, with an additional 32 manholes that need markers installed. This will be a multi- year project costing an estimated $450,000.  The substantial decrease to the Storm Utility fund is primarily due to removing the $300,000 for the CSAH 38 project that was needed in 2018. Commissioners would like to propose a wage increase for themselves in the 2019 budget. Administrator Martin will convey the proposal to other department heads and commissions. Finance Director May recommended not making a motion to approve the budget at this meeting. Staff will bring back a final copy of the budget at a future meeting. The final budget will have the new stormwater position and it may include the new medical insurance costs for 2019. 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. EXECUTIVE DIRECTOR’S REPORT 8.a. City Projects Update Erickson gave an overview of some of the ongoing projects within the city.  2018 SIP – Streets in the southwest portion of the city are finished. Restoration is currently underway.  CDA Townhomes – County will start on this project in the next couple of weeks.  Meadow Ridge – Will start in the next couple of weeks. Development will include about 150 homes (34 units in the first phase).  Dunmore 2 – Will include a storm water lift station. Waiting for developer to sign the subdivision agreement and submit project fees. 8.b. Set Next Meeting Agenda for September 17, 2018 Demuth requested to discuss how many irrigation controller rebates have been submitted. OTHER UPDATES ADJOURNMENT Demuth adjourned the meeting at 7:43 p.m. Respectfully submitted, Jessie Barikmo Public Works Secretary