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HomeMy WebLinkAbout02-12-18-SWSARZEJ\JHILLS Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Reason for meeting: 1. Utility Rate Study Requested Date:2/12/18 Requested time: 5:30 pm Open meeting X Closed meeting Signature of person(s) making request: hamy jileti. I 2/01/2018 Mayor or Council Member Date Council Member Date This section to be completed by City staff- Date received: o / I / / Date meeting to be held: 2/12/18 Time of meeting: 5:30 pm Location: City Hall All necessary posting and notices have been completed. I , (4, , 4 a / / / ie Signat ; of City Clerk Date City of Arden Hills•1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 •www.cityofardenhills.org - DIWEN HILLS Approved: March 12, 2018 CITY OF ARDEN HILLS,MINNESOTA SPECIAL CITY COUNCIL WORK SESSION FEBRUARY 12,2018 5:30 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the Special City Council Work Session at 5:30 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung and Steve Scott Absent: None Also present: City Administrator Dave Perrault; Public Works Director/City Engineer Sue Polka; and City Clerk Julie Hanson 1. AGENDA ITEMS A. Utility Rate Study City Administrator Perrault stated the City Council requested a Special Work Session to discuss 2018 capital projects as they relate to the Ehlers Rate Study presented to the City Council at the January 16, 2018 Work Session. He explained Public Works Director/City Engineer Polka would be reviewing the proposed capital projects, anticipated cost, and the reasoning as to whether or not the project needs to be completed in 2018, or could be delayed. Public Works Director/City Engineer Polka discussed in further detail the proposed water projects for 2018 as detailed in the agenda packet. Mayor Grant questioned if the Council would support pushing the Indian Oaks/Floral Drive PMP into 2019. Councilmember Scott commented the neighborhood was very receptive to the work beginning in 2018. Councilmember Holden stated she would like to keep the bonding level as low as possible for this project. She supported this project going forward in 2018 because the neighbors were asking for the improvements. Council consensus was to keep the Indian Oaks/Floral Drive project in the 2018 PMP. ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION—FEBRUARY 12, 2018 2 Further discussion ensued regarding future PMP projects and the bonding process. Councilmember Holmes asked if the City would ever bond over the amount estimated in the PMP. City Administrator Perrault reported the City would only bond for what needed to be paid for in a specific year. Councilmember Holden asked if the Council should be considering a water rate increase. City Administrator Perrault discussed the timeline that would have to be followed by the City Council in order to consider a water rate increase. Mayor Grant suggested a water rate not be considered until providing the residents with proper notification. Council consensus was to bond for$2 million. Public Works Director/City Engineer Polka discussed in further detail the proposed sanitary sewer projects for 2018 as detailed in the agenda packet. Public Works Director/City Engineer Polka discussed in further detail the proposed stormwater projects for 2018 as detailed in the agenda packet. Mayor Grant requested further information regarding the City's sewer lining program. Public Works Director/City Engineer Polka provided the Council with an overview on the City's sewer lining program and noted at the end of 2010, 47% of the sewer system was still clay pipe. She was pleased to report that as of 2018, 22%of the lines will be clay pipe. This meant the City was making great progress. Mayor Grant commented on the dollars available from the Met Council to assist with lining sewer pipes. Public Works Director/City Engineer Polka noted the City would receive $25,000 in Met Council funds for 2018, with a chance for more. Mayor Grant asked if the Council supported spending$200,000 on sewer lining for 2018. Council consensus was to spend$200,000 on sewer lining for 2018. Public Works Director/City Engineer Polka discussed potential expenses for lift stations and noted the lift station on Cleveland Avenue was in need of repairs. Councilmember Holmes suggested $500,000 be set aside for sanitary sewer projects for 2018, with $175,000 for sewer lining, $270,000 for Indian Oaks/Floral Drive PMP and $60,000 being used for lift station repairs. ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION—FEBRUARY 12, 2018 3 Mayor Grant suggested the Council levy $525,000 to ensure the City had adequate funding for these three projects. Councilmember Holden stated she would like to review the City's utility rates prior to setting the levy amounts. The Council turned their discussion to the City's proposed water and sewer rates. Councilmember Holden feared that the City was losing money based on its current rates and would not be able to cover further bonding. City Administrator Perrault discussed the amount of money the City would have to generate in order to cover its expenses and future bonding. Mayor Grant requested staff speak with Ehlers and ask them to further show their work on the numbers and projections. Councilmember Holmes suggested Ehlers also show how the City would be paying off its bonds through the proposed rates. Councilmember Holden recommended the rates be adjusted to encourage water preservation for larger commercial users. She stated she did not want to see any water rates decreasing for any user. Councilmember Holmes agreed that Ehlers should reconsider the rates in order to ensure no user has a rate decrease. She suggested the rates go up by 2%or 3%. City Administrator Perrault thanked the Council for their input and noted he would speak with Ehlers. 2. COUNCIL COMMENTS AND STAFF UPDATES Councilmember McClung reported he would not be able to attend the February 26, 2018 City Council meeting. Mayor Grant recommended the lot split item for Thom Drive be placed on the March 12, 2018 City Council agenda. ADJOURN Mayor Grant adjourned the Special City Council Work Session at 6:55 p.m. 41I ! . ,!Laattia I n I J Hanson David Grant Cr Clerk Mayor