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HomeMy WebLinkAbout20180917 UC Minutes UTILITY COMMISSION REGULAR MEETING MINUTES September 17, 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 September 17, 2018, at 5:32 p.m. in the Upper Conference Room, City Hall, 2875 145th Street West, Rosemount. Commissioner Demuth called meeting to order with Commissioner Cahn, Mayor Droste, Finance Director May, Public Works Director/City Engineer Erickson, and Recording Secretary Barikmo. Commissioner Nelson was absent. ADDITIONS OR CORRECTIONS TO AGENDA None AUDIENCE INPUT APPROVAL OF MINUTES Motion by Cahn Second by Demuth Motion to approve the minutes of the August 20, 2018, Utility Commission meeting. Motion carried. PUBLIC HEARINGS OLD BUSINESS 6.a. Acceptance of KLM’s Proposal for Reconditioning Services for the Chippendale Water Tower Erickson explained the proposal is only for professional services related to design and construction administration and management. KLM will not be completing the construction. There are 3 parts to KLM’s proposal: Design ($12,000), Construction Management ($9,680), and Construction Observation ($64,169). KLM will be onsite with the contractor monitoring the construction work full-time. The funding for this project is $650,000 and is included in the 2018 budget. The interior coating of the tower is older than the exterior. The current interior coating is 27 years old. Recoating the exterior and interior at the same time will put them both on the same timeline. Erickson explained reasoning for not doing a competitive bid. This is a professional services contract and as such there is no statutory requirement regarding lowest bid, award is typically based on best qualified. KLM is part of the City’s engineering pool and they have already gone through a screening process. Other design firms are not familiar with our towers and would likely result in higher design costs and additional staff effort. Construction management and observation costs would most likely stay the same. Erickson highly recommended to the commissioners to accept KLM’s proposal so this can go to City Council on September 18, 2018. Commissioner Cahn questioned if the other $599,000 will go towards competitive bid. Erickson confirmed that it will. Once KLM finishes the design, Erickson will bring the plans back to Council on November 5 for Council to authorize bidding. There will be an open bid process and potential award for contract in late 2018 or early 2019. Commissioner Cahn requested for future projects that city staff look into what other surrounding cities, such as Eagan & Apple Valley, use for their management services. Staff requested the Utility Commission recommend the City Council approve KLM’s Proposal for Reconditioning Services for the Chippendale Water Tower on the September 18 City Council Meeting. Motion by Cahn Second by Demuth Motion to accept KLM’s Proposal for Reconditioning Services for the Chippendale Water Tower. Motion carried. 6.b. Water and Sewer Rate Model Updates Erickson referred back to the August Utility Commission meeting about the discussion regarding phasing out the fixed fee for sewer. The revenue that is generated from the fixed fee does not cover Metropolitan Council Environmental Services (MCES) costs. Staff explored the option of transitioning to usage-based billing by phasing out the fixed rates over the next three years. Erickson explained that the water and sewer phase out models will go to work session in October. Utility Commission has only seen the removal of the fixed fee for sanitary sewer. Erickson requested that the Utility Commission look into phasing out the fixed fee for water as well. There are two fixed fees that would remain; the meter maintenance fee and the surcharge. The meter maintenance fee is dependent on the size of the meter, with the most common ¾-inch meter having a $1 per quarter fee. Staff requested the Utility Commission recommend the City Council approve the updated water rate models with phase-out fixed rates. Motion by Cahn Second by Demuth Motion to recommend to City Council approval of the updated water and sewer rate models with phase-out fixed rates. Motion Carried. NEW BUSINESS 7.a. Approve First Amendment to Tower Lease Agreement with Sprint on Connemara Tower Erickson explained to the commission that this item was planned for City Council action on September 19, 2018, but will be pulled until the lease is finalized. Erickson wanted to bring the item to Utility Commission now so the process wouldn’t be postponed for another month. Sprint is requesting additional space for their equipment in the water tower which would fall within what is allowed based on a rate schedule. The City has also discussed with Sprint about increasing their current annual rate to $24,000/year. Commissioner Cahn questioned what other cities are charging for annual rent. Erickson assured Cahn that $24,000/year is average throughout other cities. Erickson also stated that some cities publish their rates on their website. Staff recommends that the Utility Commission approve the amendment to the Tower Lease Agreement with Sprint on the Connemara Tower. Motion by Demuth Second by Cahn Motion to approve the amendment to the Tower Lease Agreement with Sprint on the Connemara Tower. Motion Carried. 7.b. Draft Comprehensive Plans for Water, Sanitary Sewer and Stormwater Erickson told the commission that staff has asked for an extension for the final comprehensive plan. The Sanitary Sewer and Stormwater plans are updated. Additional work still needs to be completed on the Water plan. Mayor Droste asked how much of UMore is included in the 2040 Comprehensive Plan. Erickson explained that all of Umore was included for planning purposes. Droste stated that the Met Council did not include UMore in the growth projection numbers. Erickson confirmed with Commissioners that he will bring back the completed Comprehensive plans for their review at a future meeting. EXECUTIVE DIRECTOR’S REPORT 8.a. City Projects Update Erickson gave an overview of some of the ongoing projects within the city.  2018 SIP – Completed for the year. Restorations are finishing up.  Dunmore – Utility work and base course paving is complete.  Meadow Ridge – Gravel portion of Akron north of Bonaire is closed. Utilities are being extended to Meadow Ridge 1st Addition.  Flint Hills – Athletic fields are completed. New fields will open Fall 2019 at the earliest.  Akron – County will host open house in October. There will not be any assessments with this project. Staff is reviewing whether or not 121st Street and 124th Street can be included with the Dakota County Akron project in 2020.  Prestwick 16th Addition – Includes 19 single-family homes.  School District Parcel – Located on the southwest portion on Bonaire and Akron. This parcel will likely have sewer extended from Akron over to the west parcel line.  HWY 42 & 55 – Starting week of September 17. There will be turn-lane additions on the east end of town. East bound traffic will still be available. West bound traffic will need to take detour.  Wells 1 & 2 – First week of October a contractor will be cleaning the wells. After that, the State will complete their videoing and gamma-logging. The final step will be to have a contractor seal the wells. Demuth requested that Connemara Trail be reviewed for re-paving. Erickson explained staff has reviewed the road and the confirmed that collector streets within the city need some attention. Final plans for re- paving have not been established yet. 8.b. Set Next Meeting Agenda for October 15, 2018 Demuth requested a report be provided on park irrigation & Splash Pad usage for the past 5 years to current. An update on the water efficiency grants will also be reported to the commission at next meeting. OTHER UPDATES ADJOURNMENT Demuth adjourned the meeting at 6:42 p.m. Respectfully submitted, Jessie Barikmo Public Works Secretary