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ARDEN HILLS CITY COUNCIL WORK SESSION — MARCH 19, 2018 3 Councilmember Fran Holmes wondered why the intersection couldn't remain a four-way stop. Councilmember Holden felt a roundabout wouldn't function properly with the traffic coming from Bethel College. Councilmember Holmes stated her opposition to a traffic study. Public Works Director/City Engineer Polka noted part of the problem is the turn lanes do not line up properly and there isn't enough pavement width to correct them. Councilmember Scott sided with staff on the need for the study because of the trail work going on at the same time. Councilmember Dave McClung said he is leery of spending the money on the study but is also leery of reconstructing the street without also doing the intersection. Mayor Grant and Councilmember Holmes would be agreeable to the study if they take the possibility of a roundabout out. Mayor Grant asked Public Works Director/City Engineer Polka to discuss with Ramsey County if the City could disagree with a roundabout if the study points to one. E. Utility Rate Study Ehlers Senior Municipal Advisor Stacie Kvilvang discussed changes to the utility rates based on feedback from the Council Work Session in January, 2018. There are no decreases in rates, but bills could decrease. Councilmember Holmes wondered if the increases could be less drastic from year to year. Ehlers Senior Municipal Advisor Kvilvang recommended that City establish a fund balance policy. She then reviewed the proposed residential and commercial water rates, and sewer utility rates. Two options were presented, Option One was recommended which would eliminate the 15,000 gallon minimum, incorporate base charges for all accounts and increase water rates by six percent in 2018, ten percent in 2019 and six percent in 2020. Option Two was to stay with the exiting rate structure. After discussion, Councilmembers McClung and Scott voiced support for Option One. Councilmember Holden agreed with Option One but would like to have the sewer base charge be set at $50.00. Councilmember Holmes would like to see the percentage increase stay the same each year. Ehlers Senior Municipal Advisor Kvilvang made note that they would bring more information back using Option One with a $50.00 sewer base, they will even out the yearly increase percentage as much as possible and keep the bonding rate amount as low as possible. Further discussion ensued regarding the Utility Rate Study as it relates to TCAAP.