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HomeMy WebLinkAbout04-16-18-WSAGENDA ITEMS Legislative Update Representative Randy Jessup MEMO.PDF Cooperative Agreement - County Road E Intersection Sue Polka, Public Works Director/City Engineer Joe Lux, Ramsey County MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF Utility Rate Study Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF Staff Recommendations On Planning Cases Mayor Grant MEMO.PDF Old Highway 10 Mail Delivery Matthew Bachler, City Planner Dave Perrault, City Administrator MEMO.PDF Communications Update Dawn Skelly, Communications Coordinator MEMO.PDF 2018 Elections Process - Early Voting Julie Hanson, City Clerk MEMO.PDF Compensation Study Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF COUNCIL/STAFF COMMENTS ADJOURN Mayor: David Grant Councilmembers: Brenda Holden Fran Holmes Dave McClung Steve Scott      City Council Work Session Agenda April 16, 2018   5:00 p.m.  City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER 1. 1.A. Documents: 1.B. Documents: 1.C. Documents: 1.D. Documents: 1.E. Documents: 1.F. Documents: 1.G. Documents: 1.H. Documents: 2. AGENDA ITEMSLegislative UpdateRepresentative Randy Jessup MEMO.PDFCooperative Agreement - County Road E IntersectionSue Polka, Public Works Director/City EngineerJoe Lux, Ramsey County MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFUtility Rate StudyDave Perrault, City Administrator MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFStaff Recommendations On Planning CasesMayor Grant MEMO.PDF Old Highway 10 Mail Delivery Matthew Bachler, City Planner Dave Perrault, City Administrator MEMO.PDF Communications Update Dawn Skelly, Communications Coordinator MEMO.PDF 2018 Elections Process - Early Voting Julie Hanson, City Clerk MEMO.PDF Compensation Study Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF COUNCIL/STAFF COMMENTS ADJOURN Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott     City Council Work SessionAgendaApril 16, 2018  5:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.1.A.Documents:1.B.Documents:1.C.Documents:1.D. Documents: 1.E. Documents: 1.F. Documents: 1.G. Documents: 1.H. Documents: 2. Page 1 of 1 AGENDA ITEM – 1A MEMORANDUM DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: State Representative Randy Jessup - Update Budgeted Amount: Actual Amount: Funding Source: $ $ Council Should Consider N/A Background/Discussion State Representative Randy Jessup is scheduled to be at the April 16, 2018, City Council work session. He will provide an update and answer questions. Page 1 of 1 DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers David Perrault, City Administrator FROM: Sue Polka, Public Works Director/City Engineer SUBJECT: Cooperative Agreement for a Traffic Study at County Road E, Lake Johanna Boulevard and Old Snelling Avenue Budgeted Amount: Actual Amount: Funding Source: N/A $8,910.50 PIR Background/Discussion The Capital Improvement Plan identifies a project to reconstruct Old Snelling Avenue, including bridge reconstruction (Attachment B) at a cost of $1,750,000. Ramsey County and City staff have been discussing intersection improvements at Old Snelling Avenue and County Road E/Lake Johanna Boulevard. The County has requested that the City include the intersection improvements as a part of the Old Snelling Avenue reconstruction project. The project is scheduled for construction during 2019. In order to determine optimal improvements for the intersection, a traffic study is required. Joe Lux from Ramsey County Public Works will be in attendance to discuss the intersection study. The attached Cooperative Agreement, which has been reviewed by the City Attorney, spells out the City’s financial contribution to the study. WSB has provided a scope of work and fee totaling $35,642.00. Since the City’s right of way extends on only one leg of the intersection (Old Snelling Avenue south of County Road E), the City’s proposed contribution is 25% or $8,910.50. Attachments Attachment A: Capital Improvement Plan, Project #17-Str-004, Old Snelling Ave PMP Attachment B: Cooperative Agreement PUBW2017-21R AGENDA ITEM – 1B MEMORANDUM PW 20XX-XX Page 1 of 4 Agreement PUBW 2018-03 RAMSEY COUNTY COOPERATIVE AGREEMENT WITH THE CITY OF ARDEN HILLS FOR A TRAFFIC STUDY AT County Road E (CSAH) 15) Lake Johanna Boulevard (CSAH 149) and Old Snelling Avenue (CSAH 76/MSAS 111) SAP 062-615-037 Total Project Cost: $ 35,642.00 Attachments: City of Arden Hills Cost: $ 8,910.50 A – Project Proposal Ramsey County Cost: $ 26,731.50 This Agreement is between the City of Arden Hills, a municipal corporation ("City") and Ramsey County, a political subdivision of the State of Minnesota, ("County") for an intersection control evaluation (ICE) at County Road E (CSAH 15), Lake Johanna Boulevard (CSAH 149) and Old Snelling Avenue (CSAH 76/MSAS 111) (“Project”). RECITALS 1. The Project is identified in Ramsey County’s 2018 – 2022 Transportation Improvement Program under traffic study items. 2. County Road E is designated as County State Aid Highway (CSAH) 15, Lake Johanna Boulevard as CSAH 14, and Old Snelling Avenue north of County Road E as CSAH 76. Old Snelling Avenue south of County Road E is designated as Municipal State Aid Street (MSAS) 111. 3. The Project has been designated by the Minnesota Department of Transportation (Mn/DOT) as eligible for County State Aid Highway funds. 4. The subject road segment is located within the City. AGREEMENTS 1. Responsibility for Design Engineering 1.1. The Project will be prepared in accordance with the Minnesota Manual on Uniform Traffic Control Devices (MMUTCD). 1.2. The City will direct the engineering services for the Project. 1.3. The Project will be presented to the County and will be on file at the city of Arden Hills. 2. Procurement and Award of Contract PW 20XX-XX Page 2 of 4 2.1. The City will secure and administer the consultant services contract for the Project in accordance with state law and City procedures. 3. Project Costs 3.1. Except as provided herein, the County and City will participate in the costs of the Project in accordance with the Ramsey County Cost Participation Policy and approved in the 2018 – 2022 Ramsey County Transportation Improvement Plan. If there is a conflict between the Cost Participation Policy and this Agreement, this Agreement will prevail. 3.2. The County will pay for 75% of cost of the Project, the City will pay 25%. 4. Payment Schedule 4.1. The City will invoice the County for costs of the Project, based on actual costs paid to the consultant. 4.2. Payment will be made within 30 days of receipt of an invoice. 5. The City and County shall indemnify, defend, and hold each other harmless against any and all liability, losses, costs, damages, expenses, claims, or actions, including attorney’s fees, which the indemnified party, its officials, agents, or employees may hereafter sustain, incur, or be required to pay, arising out of or by reason of any act or omission of the indemnifying party, its officials, agents, or employees, in the execution, performance, or failure to adequately perform the indemnifying party’s obligation pursuant to this Agreement. Nothing in this Agreement shall constitute a waiver by the County or the City of any statutory or common law immunities, limits, or exceptions on liability. 6. This Agreement shall remain in full force and effect until terminated by mutual agreement of the parties. THE REMAINDER OF THIS PAGE IN INTENTIONALLY BLANK. PW 20XX-XX Page 3 of 4 CITY OF ARDEN HILLS, MINNESOTA By: _______________________________ Date:_______________________ Mayor By: _______________________________ Date:_______________________ City Administrator Approved by the Office of Financial Services: By: _______________________________ Approved as to Form: By: _______________________________ City Attorney PW 20XX-XX Page 4 of 4 RAMSEY COUNTY, MINNESOTA _________________________________ Date: ____________________________ Julie Kleinschmidt, County Manager Approval recommended: _________________________________ Ted Schoenecker, Director Public Works Department Approved as to form: _________________________________ Assistant County Attorney    701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800  Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com  December 29, 2017 Ms. Sue Polka Arden Hills Public Works 1425 Paul Kirkwold Drive Arden Hills, MN 55112-3933 Re: Proposal for ICE Report and Concept Layout for Intersection Improvements at Old Snelling Avenue and County Road E Dear Ms. Polka: WSB & Associates, Inc. (WSB) is pleased to submit this proposal for engineering design services for the completion of a concept layout, Intersection Control Evaluation (ICE) report and cost estimate for improvements at Old Snelling Avenue and County Road E, in the City of Arden Hills. We understand the preferred intersection control for the intersection is likely a roundabout. WSB is one of the most qualified roundabout designers in Minnesota, as we have completed the design of over 60 roundabouts over the past several years. Below is a summary of our proposed scope and schedule. Please feel free to review and provide feedback to us at your earliest convenience. CONSULTANT SERVICES Task 1: Project Management and Agency Involvement: This task is essential to ensure the project remains on schedule and all components are addressed as the project moves forward. Andrew Plowman will serve the role of Project Manager on this project and it will be his duty to perform a majority of these tasks.  Task 1.1 Project Management: Andrew will work closely with Sue Polka and the Ramsey County project manager to ensure the project remains on schedule and on-budget. Each month, Andrew will provide a project update that will list the budget, schedule and key milestones of the project.  Task 1.2 Review Meetings: It is anticipated two review meetings will be held throughout the project. The goal of the first meeting will be to share the initial geometric concept with the project team. The goal of the second meeting will be to review the cost estimate and final ICE report. Andrew will prepare the agenda and meeting minutes for the meeting. The agenda and minutes will be sent a minimum of 48 hours from the date of the meeting. Task 2: Data Collection: This task includes data collection in order to identify the proposed improvements.  Tasks 2.1 Private Utility Investigation (Gopher State One Call): WSB will perform a gopher state one call to identify the existing private utilities that would be encountered during construction. This task will be limited to receiving maps from the private utility companies. The utilities will not be marked in the field.  Task 2.2 Turning Movements: WSB will set tube counters to provide daily traffic volumes for a five day period. In addition, traffic turning movements will be tracked for one hour before and after December 29, 2017 Page 2 C:\Plots\Letter proposal.docx the AM and PM peak hours. We will summarize and use the data to develop the concepts and include in the ICE report.  Task 2.3 Crash Data: WSB will utilize MnDOT’s CMAT website to collect and summarize crash rates for the intersection. This information will be included in the ICE report. Task 3: Preliminary Engineering: Concept layouts will likely need to be created for a roundabout, signal and possibly all-way stop option.  Task 3.1 Concept Layout: WSB will develop a layout that generally follows the MnDOT Geometric Layout style. The layout will include roadway geometry, typical sections and insets for intersection alternatives.  Task 3.2 Traffic Modeling: WSB will analyze the intersection alternatives with Rodel software for the roundabout alternative and Synchro software for the signal alternative. This data will be summarized based on level of service.  Task 3.3 Performance Checks: Roundabouts require performance checks such as fast path and turning movements. WSB will provide the necessary design checks and ensure the concept is within the MnDOT and FHWA thresholds.  Task 3.4 Preliminary Right of Way Limits: WSB will establish preliminary right of way limits in order for the County to get a sense of the future needs as the project progresses. It is assumed the existing right of way alignment will be on-hand at WSB from previous projects, and no title work will be needed. Acquiring title work would be considered an additional item beyond what is contained in this proposal.  Task 3.5 Cost Estimation: WSB will complete a preliminary cost estimate for the project upon completion of the preliminary layout. Task 4: ICE Report: WSB will complete a final ICE report that can be submitted and approved by MnDOT. The report will summarize the data completed in the previous tasks. PROPOSED FEE We propose to complete this project for the below proposed fee below: Total Project Base Fee: ..................................................................... $35,642 The attached detailed scope of work and associated fees are for your review. December 29, 2017 Page 3 C:\Plots\Letter proposal.docx If you have any questions about this proposal, please feel free to call me at 763-287-7149. Sincerely, WSB & Associates, Inc. Andrew Plowman, P.E. Project Manager, Associate ACCEPTED: City of Arden Hills By: ______________________________________ __________________ S u e P o l k a , P E D a t e : Es t i m a t e d H o u r s Pr o j e c t G r a d u a t e T r a f f i c E n g i n e e r i n g O f f i c e T o t a l Pr i n c i p a l M a n a g e r E n g i n e e r E n g i n e e r T e c h I I I T e c h I I H o u r s Cost Ta s k N o . 1 Pr o j e c t M a n a g e m e n t 1. 1 P r o j e c t M a n a g e m e n t 2 4 2 8 1 , 1 0 4 . 0 0 $ 1. 2 R e v i e w M e e t i n g s 2 1 2 4 2 2 0 2 , 8 3 8 . 0 0 $ 2 Da t a C o l l e c t i o n 2. 1 P r i v a t e U t i l i t y I n v e s t i g a t i o n 4 2 6 6 2 8 . 0 0 $ 2. 2 T u r n i n g M o v e m e n t s 4 2 0 2 4 2 , 7 3 2 . 0 0 $ 2. 3 C r a s h D a t a 4 4 4 0 8 . 0 0 $ 3 Pr e l i m i n a r y E n g i n e e r i n g 3. 1 C o n c e p t L a y o u t 4 4 0 2 4 6 8 9 , 2 0 8 . 0 0 $ 3. 2 T r a f f i c M o d e l i n g 2 4 8 1 6 3 0 3 , 8 9 2 . 0 0 $ 3. 3 P e r f o r m a n c e C h e c k s 1 6 8 4 2 8 3 , 6 8 8 . 0 0 $ 3. 4 P r e l i m i n a r y R i g h t o f W a y L i m i t s 4 8 1 2 1 , 4 2 4 . 0 0 $ 3. 5 C o s t E s t i m a t i o n 8 1 6 2 4 2 , 8 4 8 . 0 0 $ 4 IC E R e p o r t 4 8 4 3 2 4 5 2 6 , 8 7 2 . 0 0 $ To t a l H o u r s 1 4 9 6 8 0 5 4 2 6 6 2 7 6 3 5 , 6 4 2 . 0 0 $ Ho u r l y C o s t s 17 0 . 0 0 1 5 2 . 0 0 1 0 2 . 0 0 13 3 . 0 0 1 1 0 . 0 0 7 8 . 0 0 De t a i l e d D e s i g n L a b o r C o s t s $ 2 , 3 8 0 . 0 0 $ 1 4 , 5 9 2 . 0 0 $8 , 1 6 0 . 0 0 $7 , 1 8 2 . 0 0 $ 2 , 8 6 0 . 0 0 $ 4 6 8 . 0 0 35,642.00 $ ES T I M A T E O F H O U R S A N D C O S T S Ci t y o f A r d e n H i l l s / R a m s e y C o u n t y , M i n n e s o t a Ol d S n e l l i n g A v e n u e a n d C o u n t y R o a d E Co s t E s t i m a t e . x l s x 12/29/2017 DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Utility Rate Study Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide further direction on the utility rate study presentation provided by Ehler’s. Background A rate study has been conducted by Ehler’s to assess the health of our utility funds, and to project necessary rate increases for future years. The first iteration of the utility rate study was presented at the January 15, 2018 Work Session. A second Work Session was held on February 12, 2018 to discuss capital projects as they relate to the utility rate study. A third Work Session was held on March 19, 2018. Ehlers has taken the direction from the previous Work Session and updated their presentation and information. At this time, Ehlers is ensuring that they have captured the direction correctly. Unless the Council requests a walk-thru, Ehlers will be present to answer any remaining questions, but not go through the presentation in its entirety. If the direction has been sufficiently captured, the City will move to approve the updated rates at a future City Council meeting. Attachment Attachment A: Ehler’s Memo Attachment B: Ehler’s Presentation AGENDA ITEM –1C MEMORANDUM Memo To: Dave Perault - City Administrator From: Stacie Kvilvang & Jeanne Vogt - Ehlers Date: March 30, 2018 Subject: Updated Utility Rate Analysis Based Upon Council Feedback Pursuant to feedback from the Council on March 19, 2018, we have updated the projections and presentation to include the following changes: 1. Water Utility: a. Adjusted the bonding in 2018 to eliminate borrowing from the PIR fund in future years b. Smooth out rate increases across years c. Provide Impact Analysis for customers with 12” meters 2. Sewer Utility a. Increase the Base Charge in Option #1 from $46.41 to $50.00 per quarter b. No changes to Consumption Charges c. Smooth out rate increases across years 3. Storm Water Utility a. Decrease 2018 rate increase from 3% to 2% The attached presentation includes the addition of updated slides to the original presentation on Monday night. The new slides include the word “UPDATED” in red in the upper right-hand corner of the slide, or the entire heading is in red if it is an entirely new slide. Please look for text or notations in red to denote updated information throughout. We did not remove any slides, so we typically added the “UPDATED” slide immediately after the original slide in the presentation. This will allow the Council to easily see the “before” and “after” effects of the requested changes. Water Utility 1. 2018 bonding amount has been adjusted from $2.0 million to $2.5 million. We are using July 1 as the distribution date for bond proceeds for now. We can revise as the timeline for construction projects firms up later this spring. a. The additional $500,000 in bonding helps to smooth out annual rate increases while still maintaining a positive cash balance, and allows for future unknowns such as lower water revenues due to weather, while eliminating the need to borrow from the PIR Fund. 2. Rate Increases have been adjusted to 6.5% per year for 2018 through 2022. We are projecting 2.0% for 2023 through 2028. 3. Impact Analysis for customers with 12” meters. After looking at this more closely, we realized there is only 1 customer with a 12” meter (not 3) and it is the Department of Military Affairs, or the US Army. The Updated Impact Analysis is on Slide 44. They are the far right-hand column. They are projected to see an increase in the water portion of their bill of $2,888.28 per quarter. Their total bill is projected to increase $2,965.75 under Option #1. Sewer Utility 1. Increasing the quarterly base charge from $46.41 to $50.00 will result in additional revenues of $46,000 per year. This equates to a 2018 rate increase of 6.5% instead of 4.0%. This additional 1.5% is without any changes to the proposed consumption rate of $5.15 per 1,000 gallons shown in Option #1. a. All sewer bills would see an increase of $3.59 per quarter in 2018. 2. The increase in the quarterly base charge allows the fund to maintain 6.5% rate increases from 2018 through 2021. We are projecting 3.5% rate increases for 2022 through 2028. Storm Water Utility 1. We have reduced the 2018 rate increase from 3.0% to 2.0%. Future years remain at 1.0% increase for 2019 and beyond. As you can see, small changes can have a ripple effect on the rates and the impacts on ratepayers. We believe the changes requested by the Council have had a positive impact on the study and will provide the foundation for the TCAAP projections. We will begin working on the next phase of the study once Stacie has returned from her leave. Feel free to contact either one of us if you have additional questions or if you would like to discuss. City of Arden Hills Utility Rate Study Updates Stacie Kvilvang & Jeanne Vogt March 19, 2018 UPDATED SLIDES 1 Feedback from Council •Change Bonding for 2018 –From $3.0 million to $2.0 million for Water in 2018 –From $450,000 to $525,000 for Sewer in 2018 •Use cash before bonding in Water and Sewer Funds •Updated CIP Amounts •Adjust Rate Structures –No decreases in quarterly bills •Ensure we are covering Roseville’s costs 2 Water Utility –Requested Updates to Rates •Changes to Option #1: –Adjust 2018 bonding to eliminate borrowing from PIR Fund in future years •Recommending $2.5 million in bonding, instead of $2.0 million –Eliminates negative cash balances in 2020 & 2022 –No Changes to Meter Charges •Meter and Standby Charges still combined –Smooth out rate increases •Recommending 6.5% increases for 2018 –2022 •Recommending 2.0% increases for 2023 and beyond 3 Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE & PROJECTS Water Tower Repair & Repainting 12-W-001 520,000 CR E2 Water Replacement/Old Hwy 10 Loop 17-W-001 1,050,000 Booster Station Repair/Upgrade (Roseville)18-W-001 400,000 154,000 County Road F Watermain Replacement 18-W-002 300,000 Future PMP 18-Str-005 400,000 400,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 751,000 Watermain Replacement 250,000 250,000 250,000 250,000 Total Existing Infrastructure & Projects 3,021,000 404,000 650,000 250,000 650,000 Actual CIP (2018 Dollars)2018 3,021,000 404,000 650,000 250,000 650,000 Percent Inflation 3%3%3%3%3% 3,021,000 416,120 689,585 273,182 731,581 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 2,000,000 0 0 0 0 15-Year Term 0 0 0 0 0 Water Utility –Updated CIP 4 •2018 Bonding Amount reduced to $2.0 million •CR E2 project increased from $855,000 to $1,050,000 •Bonding in future years’ eliminated Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE & PROJECTS Water Tower Repair & Repainting 12-W-001 520,000 CR E2 Water Replacement/Old Hwy 10 Loop 17-W-001 1,050,000 Booster Station Repair/Upgrade (Roseville)18-W-001 400,000 154,000 County Road F Watermain Replacement 18-W-002 300,000 Future PMP 18-Str-005 400,000 400,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 751,000 Watermain Replacement 250,000 250,000 250,000 250,000 Total Existing Infrastructure & Projects 3,021,000 404,000 650,000 250,000 650,000 Actual CIP (2018 Dollars)2018 3,021,000 404,000 650,000 250,000 650,000 Percent Inflation 3%3%3%3%3% 3,021,000 416,120 689,585 273,182 731,581 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 2,500,000 0 0 0 0 15-Year Term 0 0 0 0 0 Water Utility –Updated CIP UPDATED 5 •2018 Bonding Amount reduced to $2.5 million •CR E2 project increased from $855,000 to $1,050,000 •Bonding in future years’ eliminated Prelim. Budget 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6.50%6.50%6.50%6.50%6.50%2.00%2.00%2.00%2.00%2.00%2.00% Projected Water Utility –Impact on Cash Flows UPDATED •Water Rates –Rate increases 6 Prelim. Budget 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6.00%10.00%6.00%6.00%6.00%2.00%2.00%2.00%2.00%2.00%2.00% Projected Prior Work Session Current Recommendations —Rate increases allow: •Eliminate bonding after 2018 •Pay cash for capital projects in 2019 and beyond •Ensure sufficient funds to pay for debt service •Not high enough to build cash reserves until 2023 —Water Fund still projected to have negative cash in 2020 and 2022 •Internal borrowing from PIR Fund —Ehlers recommends borrowing $3.0 million $2.5 million in 2018 to avoid negative cash balances in the future ** UPDATED Recommendations ** UPDATES 1.Rate increases of 6.5%/year 2.Negative Cash Balances eliminated 3.2018 borrowing of $2.5 million Water Utility –Cash Flows 7 City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.00%10.00%6.00%6.00%6.00%2.00%2.00%2.00%2.00%2.00% Operating Revenues 2,165,773 2,147,766 2,182,059 2,397,282 2,539,333 2,690,039 2,849,619 2,906,138 2,963,806 3,022,540 3,082,561 3,143,686 Operating and Maintenance Expense 1,601,171 1,662,534 1,750,066 1,802,568 1,856,645 1,912,344 1,969,715 2,028,806 2,089,670 2,152,360 2,216,931 2,283,439 Net Before Debt Service 564,602 485,232 431,993 594,714 682,688 777,695 879,904 877,332 874,136 870,179 865,629 860,247 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 234,461 234,461 234,461 234,461 234,461 234,461 234,461 234,461 234,461 Total Debt Service 0 0 0 234,461 234,461 234,461 234,461 234,461 234,461 234,461 234,461 234,461 Net Revenues 564,602 485,232 431,993 360,253 448,227 543,234 645,443 642,871 639,675 635,718 631,168 625,786 Interest Income 12,315 35,943 20,000 6,380 4,915 0 2,481 0 9,846 11,370 22,332 23,287 Transfers Out (68,396)(68,396)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000) Other Non Operating Revenues/(Expenses)984 5,565 0 5,015 4,872 4,729 4,585 4,442 4,298 1,014 983 953 Net Annual Cash Flow 509,505 458,344 351,993 271,648 358,014 447,963 552,509 547,313 553,819 548,102 554,483 550,026 Capital Projects (128,427)(162,284)(3,021,000)(416,120)(689,585)(273,182)(731,581)0 (477,621)0 (506,708)0 Bond Proceeds 0 0 2,000,000 0 0 0 0 0 0 0 0 0 Net Cash Flow after Capital Projects 381,078 296,060 (669,007)(144,472)(331,571)174,781 (179,071)547,313 76,198 548,102 47,775 550,026 Ending Cash Balance 798,259 1,094,319 425,312 280,840 0 124,050 (0)492,292 568,490 1,116,592 1,164,367 1,714,394 Due to PIR Fund 0 0 0 0 50,731 0 55,021 0 0 0 0 0 Targeted Working Capital 800,586 831,267 1,109,494 1,135,745 1,162,784 1,190,633 1,219,318 1,248,864 1,279,296 1,310,641 1,342,927 1,376,181 Unrestricted Cash Over/(Under) Target (2,327)263,052 (684,182)(854,905)(1,213,514)(1,066,583)(1,274,339)(756,572)(710,806)(194,049)(178,559)338,213 WATER FUND Projected Proposed Quarterly Rate Increase City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.50%6.50%6.50%6.50%6.50%2.00%2.00%2.00%2.00%2.00% Operating Revenues 2,165,773 2,147,766 2,192,679 2,333,412 2,483,212 2,642,675 2,812,637 2,868,433 2,925,264 2,983,251 3,042,412 3,102,766 Operating and Maintenance Expense 1,601,171 1,662,534 1,750,066 1,802,568 1,856,645 1,912,344 1,969,715 2,028,806 2,089,670 2,152,360 2,216,931 2,283,439 Net Before Debt Service 564,602 485,232 442,613 530,844 626,567 730,330 842,922 839,627 835,594 830,891 825,481 819,327 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 69,723 292,175 292,581 292,533 292,014 296,011 294,573 292,746 290,455 Total Debt Service 0 0 0 69,723 292,175 292,581 292,533 292,014 296,011 294,573 292,746 290,455 Net Revenues 564,602 485,232 442,613 461,120 334,392 437,749 550,390 547,614 539,582 536,318 532,734 528,872 Interest Income 12,315 35,943 20,000 14,039 15,750 9,308 10,880 5,566 14,718 14,338 23,371 22,379 Transfers Out (68,396)(68,396)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000)(100,000) Other Non Operating Revenues/(Expenses)984 5,565 0 (64,708)(57,303)(52,852)(47,948)(42,572)(36,713)(33,559)(26,763)(19,502) Net Annual Cash Flow 509,505 458,344 362,613 310,451 192,839 294,205 413,322 410,608 417,587 417,098 429,342 431,749 Capital Projects (128,427)(162,284)(3,021,000)(416,120)(689,585)(273,182)(731,581)0 (477,621)0 (506,708)0 Bond Proceeds 0 0 2,500,000 0 0 0 0 0 0 0 0 0 Net Cash Flow after Capital Projects 381,078 296,060 (158,387)(105,669)(496,746)21,023 (318,259)410,608 (60,034)417,098 (77,366)431,749 Ending Cash Balance 798,259 1,094,319 935,932 899,986 465,416 544,020 278,294 735,915 716,893 1,168,563 1,118,943 1,571,148 Due to PIR Fund 0 0 0 0 0 0 0 0 0 0 0 0 Targeted Working Capital 800,586 831,267 875,033 1,131,284 1,163,323 1,196,172 1,229,857 1,269,403 1,304,835 1,341,180 1,378,466 1,411,720 Unrestricted Cash Over/(Under) Target (2,327)263,052 60,899 (231,298)(697,907)(652,152)(951,564)(533,488)(587,942)(172,617)(259,522)159,428 WATER FUND Projected Proposed Quarterly Rate Increase Water Utility –Cash Flows UPDATED 8 •Rate Increases smoothed out to 6.5% through 2022 •No negative cash balances projected Water Utility –Impact on Cash Flows 9 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Water Utility –Impact on Cash Flows UPDATED 10 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Water Utility –Impact of Low Cash Balances •Fund Balance Policy: –Similar to the General Fund, we recommend the City adopt a minimum fund balance policy –Provides a cushion, should revenues fall below projections –Enterprise funds should be self-supporting •Provides funds for internal borrowing, if needed –Ensures sufficient funds on hand in case of disaster or other emergency •Rating Agencies: –Like to see long-range planning by cities •Do not like to see cash balances declining in future years –Like to see sufficient cash balances to ensure annual debt service payments can be repaid without tax levy –Low or negative cash balances can impact bond rating –Current rating by S&P is AA+ 11 Water Utility –Impact on Cash Flows 12 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Residential Water Rates 13 Current 2017 Rates per 1,000 gallons Proposed 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $2.99 3.86 6.82 Meter Charge ¾” Meter $24.36 $37.85 Standby Charge 1” Service Line $8.32 N/A* *Note: For 22 “Sewer Only” accounts, the Standby Charge would be $8.65 •2018 Rates include a 6%increase in annual revenues over 2017 Proposed Residential Water Rates UPDATED 14 Current 2017 Rates per 1,000 gallons Proposed 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $3.01 3.88 6.86 Meter Charge ¾” Meter $24.36 $37.85 Standby Charge 1” Service Line $8.32 N/A* *Note: For 22 “Sewer Only” accounts, the Standby Charge would be $8.65 •2018 Rates include a 6.5%increase in annual revenues over 2017 Proposed Commercial Water Rates 15 2017 Rates per 1,000 gallons 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $2.99 3.86 6.82 Meter Charge 1” Meter 1.5” Meter 2” Meter 3” Meter 4” Meter 6” Meter 8” Meter 10” Meter 12” Meter $58.84 124.46 200.51 436.45 654.26 1,089.82 2,196.99 3,122.56 4,429.34 $94.63 189.25 302.80 567.75 946.25 1,892.50 3,028.00 4,352.75 8,137.75 Standby Charge 1.25” Service Line 1.5” Service Line 2” Service Line 3” Service Line 4” Service Line 6” Service Line 8” Service Line 10” Service Line 12” Service Line $12.02 16.56 25.31 57.09 101.81 228.28 406.26 635.48 913.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A Proposed Commercial Water Rates UPDATED 16 2017 Rates per 1,000 gallons 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $3.01 3.88 6.86 Meter Charge 1” Meter 1.5” Meter 2” Meter 3” Meter 4” Meter 6” Meter 8” Meter 10” Meter 12” Meter $58.84 124.46 200.51 436.45 654.26 1,089.82 2,196.99 3,122.56 4,429.34 $94.63 189.25 302.80 567.75 946.25 1,892.50 3,028.00 4,352.75 8,137.75 Standby Charge 1.25” Service Line 1.5” Service Line 2” Service Line 3” Service Line 4” Service Line 6” Service Line 8” Service Line 10” Service Line 12” Service Line $12.02 16.56 25.31 57.09 101.81 228.28 406.26 635.48 913.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A Changes to Water Fund Charges Existing 2017 Rates Recommended 2018 Rates Meter Charges $380,707 $586,448 Standby Charges 205,703 776 Usage Charges 1,444,237 1,583,283 Total Revenues $2,030,647 $2,170,507 •Projected increase in revenues of $139,860, or 6% over last year Changes to Water Fund Charges UPDATED Existing 2017 Rates Recommended 2018 Rates Meter Charges $380,707 $586,448 Standby Charges 205,703 776 Usage Charges 1,444,237 1,592,646 Total Revenues $2,030,647 $2,179,874 •Projected increase in revenues of $149,227 or 6.5% over last year Sewer Utility –Requested Updates to Rates •Changes to Option #1: –Increase Recommended Base Charge from $46.41 to $50.00 per quarter. •Result: Additional $46,000 in annual sewer revenues •Equates to additional 1.5% increase in rates (from 4.0% to 6.5%) for 2018 –No Change to Consumption Charge •Leave at $5.15 per 1,000 gallons for 2018 –Smooth out rate increases across years •Recommending 6.5% increases for 2018 –2021 •Recommending 3.5% increases for 2022 and beyond 19 Sewer Utility –Updated CIP 20 Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE PROJECTS Sewer Lining/Rehabilitation 09-Sew-002 200,000 400,000 400,000 Reconstruct Lift Station 11 10-Sew-003 Future PMP 18-Str-005 400,000 400,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 270,000 Lift Stations 60,000 175,000 Actual CIP (2018 Dollars)2018 530,000 575,000 400,000 400,000 400,000 Percent Inflation 3%3%3%3%3% Inflated Project Costs 530,000 592,250 424,360 437,091 450,204 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 525,000 0 1,100,000 0 900,000 15-Year Term 0 0 0 0 0 •2018 Bonding amount increased to $525,000 •Indian Oaks/Floral Drive PMP project increased from $50,000 to $270,000 •Added Lift Station Projects of $60,000 in 2018 and $175,000 in 2019 Sewer Utility –Impact on Cash Flows UPDATED •Sewer Rates –Rate increases –Rate increases allow: •Repay interfund loan to PIR Fund by 2020 •Ensure sufficient funds to pay for debt service •Not high enough to build cash reserves until 2022 •Projected to be below Targeted Working Capital through 2028 –Sewer Fund still projected to have negative cash in 2019 21 Prelim. Budget 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 4.00%10.00%5.00%5.00%5.00%5.00%3.00%3.00%3.00%3.00%3.00% Projected Prior Work Session Current Recommendations ** UPDATED Recommendations ** Prelim. Budget 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6.50%6.50%6.50%6.50%3.50%3.50%3.50%3.50%3.50%3.50%3.50% Projected UPDATES 1.Rate increases of 6.5%/year 2.Interfund Loan still repaid in 2020 3.No changes to borrowing Sewer Utility –Cash Flows 22 City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 4.00%10.00%5.00%5.00%5.00%5.00%3.00%3.00%3.00%3.00% Operating Revenues 1,742,946 1,767,222 1,800,965 1,980,619 2,079,486 2,183,678 2,292,307 2,406,495 2,478,520 2,553,081 2,630,186 2,708,659 Operating and Maintenance Expense 1,362,274 1,616,573 1,560,374 1,607,185 1,655,401 1,705,063 1,756,215 1,808,901 1,863,168 1,919,063 1,976,635 2,035,934 Net Before Debt Service 380,672 150,649 240,591 373,433 424,086 478,615 536,093 597,594 615,352 634,017 653,551 672,725 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 61,546 61,546 197,166 197,166 313,720 313,720 313,720 378,472 378,472 Total Debt Service 0 0 0 61,546 61,546 197,166 197,166 313,720 313,720 313,720 378,472 378,472 Net Revenues 380,672 150,649 240,591 311,887 362,540 281,449 338,927 283,873 301,632 320,297 275,078 294,253 Interest Income 0 196 0 (0)0 3,581 105 8,390 4,672 6,926 9,542 11,525 Transfers Out (96,870)(96,870)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000) Other Non Operating Revenues/(Expenses)306,498 53,095 30,000 (0)(0)(0)0 0 0 0 0 0 Net Annual Cash Flow 590,300 107,070 144,591 185,887 236,540 159,029 213,032 166,264 180,304 201,223 158,620 179,777 Capital Projects (363,668)(40,509)(530,000)(592,250)(424,360)(437,091)(450,204)(463,710)0 (491,950)0 (521,909) Bond Proceeds 0 0 525,000 0 1,100,000 0 900,000 0 0 500,000 0 500,000 Net Cash Flow after Capital Projects 226,632 66,561 139,591 (406,363)912,180 (278,061)662,828 (297,446)180,304 209,274 158,620 157,868 Ending Cash Balance 0 0 (0)0 286,447 8,385 671,213 373,767 554,071 763,345 921,965 1,079,833 Due to PIR Fund 425,522 358,961 219,370 625,733 0 0 0 0 0 0 0 0 Targeted Working Capital 681,137 808,287 841,733 865,139 1,024,866 1,049,697 1,191,828 1,218,171 1,245,304 1,338,004 1,366,790 1,396,440 Unrestricted Cash Over/(Under) Target (1,106,659)(1,167,248)(1,061,103)(1,490,872)(738,420)(1,041,312)(520,614)(844,404)(691,233)(574,659)(444,825)(316,607) SEWER FUND Projected Proposed Quarterly Rate Increase Sewer Utility –Cash Flows UPDATED 23 City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.50%6.50%6.50%6.50%3.50%3.50%3.50%3.50%3.50%3.50% Operating Revenues 1,742,946 1,767,222 1,844,876 1,964,589 2,092,514 2,227,880 2,305,772 2,386,544 2,470,197 2,556,744 2,646,384 2,739,039 Operating and Maintenance Expense 1,362,274 1,616,573 1,560,374 1,607,185 1,655,401 1,705,063 1,756,215 1,808,901 1,863,168 1,919,063 1,976,635 2,035,934 Net Before Debt Service 380,672 150,649 284,502 357,404 437,113 522,818 549,557 577,643 607,029 637,680 669,748 703,105 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 61,546 61,546 197,166 197,166 313,720 313,720 313,720 378,472 378,472 Total Debt Service 0 0 0 61,546 61,546 197,166 197,166 313,720 313,720 313,720 378,472 378,472 Net Revenues 380,672 150,649 284,502 295,858 375,567 325,652 352,391 263,923 293,309 323,960 291,276 324,633 Interest Income 0 196 0 (0)(0)4,092 1,175 9,642 5,690 7,853 10,526 12,724 Transfers Out (96,870)(96,870)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000)(126,000) Other Non Operating Revenues/(Expenses)306,498 53,095 30,000 0 0 (0)0 0 0 0 0 0 Net Annual Cash Flow 590,300 107,070 188,502 169,858 249,567 203,743 227,566 147,565 172,999 205,813 175,802 211,356 Capital Projects (363,668)(40,509)(530,000)(592,250)(424,360)(437,091)(450,204)(463,710)0 (491,950)0 (521,909) Bond Proceeds 0 0 525,000 0 1,100,000 0 900,000 0 0 500,000 0 500,000 Net Cash Flow after Capital Projects 226,632 66,561 183,502 (422,392)925,207 (233,347)677,363 (316,145)172,999 213,864 175,802 189,447 Ending Cash Balance 0 0 (0)(0)327,356 94,009 771,371 455,226 628,225 842,089 1,017,891 1,207,338 Due to PIR Fund 425,522 358,961 175,459 597,851 0 0 0 0 0 0 0 0 Targeted Working Capital 681,137 808,287 841,733 865,139 1,024,866 1,049,697 1,191,828 1,218,171 1,245,304 1,338,004 1,366,790 1,396,440 Unrestricted Cash Over/(Under) Target (1,106,659)(1,167,248)(1,017,192)(1,462,990)(697,510)(955,689)(420,456)(762,944)(617,079)(495,915)(348,899)(189,101) SEWER FUND Projected Proposed Quarterly Rate Increase Sewer Utility –Impact on Cash Flows 24 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Sewer Utility –Impact on Cash Flows UPDATED 25 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital PIR Fund Projected Cash Balances 26 PIR Fund Projected Cash Balances UPDATED 27 •Loan to Sewer Fund in 2018 reduced by $28,000 •Loans to Water Fund in 2020 and 2022 eliminated Options for Sewer Utility Rates •Option #1: Base Fee for all accounts (Recommended) –Remove 15,000 gallon minimum from base charge –Include commercial and manufactured home accounts –Sufficient to cover fixed costs of the system •Option #2: Stay with Current Rate Structure 28 Existing 2017 Rate Proposed 2018 Rate 1 Base Charge - Includes 15,000 gallons 92.61$ 96.31$ 2 Mobile Homes 100.16 104.17 3 Consumption Charge - Residential 5.33 5.54 4 Consumption Charge - Commercial 5.77 6.00 Current Rate Structure Proposed 2018 Rate Usage Included 1 Base Charge - All Users 46.41$ - 2 Consumption Charge - All Users 5.15 N/A 3 Mobile Homes 133.96 17,000 Proposed Rate Structure Existing 2017 Rate Proposed 2018 Rate 1 Base Charge - Includes 15,000 gallons 92.61$ 98.63$ 2 Mobile Homes 100.16 106.67 3 Consumption Charge - Residential 5.33 5.68 4 Consumption Charge - Commercial 5.77 6.15 Current Rate Structure Proposed 2018 Rate Usage Included 1 Base Charge - All Users 50.00$ - 2 Consumption Charge - All Users 5.15 N/A 3 Mobile Homes 137.55 17,000 Proposed Rate Structure Options for Sewer Utility Rates UPDATED •Option #1: Base Fee for all accounts (Recommended) –Remove 15,000 gallon minimum from base charge –Include commercial and manufactured home accounts –Sufficient to cover fixed costs of the system •Option #2: Stay with Current Rate Structure 29 2018 rates reflect the 6.5% rate increase instead of 4.0% Changes to Sewer Utility Charges Existing 2017 Rates Option #1: Base Fee Structure Option #2: Existing Structure Base Charge $928,323 $542,069 $965,411 Manufactured Homes 113,782 152,179 118,337 Usage Charges 681,335 1,100,245 708,472 Total Revenues $1,723,440 $1,794,492 $1,792,221 •Both options incorporate the 4% rate increase needed for 2018 Slight differences due to rounding Changes to Sewer Utility Charges UPDATED Existing 2017 Rates Option #1: Base Fee Structure Option #2: Existing Structure Base Charge $928,323 $584,000 $988,667 Manufactured Homes 113,782 156,257 121,177 Usage Charges 681,335 1,100,245 726,198 Total Revenues $1,723,440 $1,840,502 $1,836,042 •Both options incorporate the 6.5% rate increase needed for 2018 Slight differences due to rounding Capital Projects –Storm Water Utility •No changes to capital projects since last meeting 32 Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE PROJECTS Storm Pond Maintenance 09-Storm-001 50,000 Storm Water Inlet/Outlet Repairs 13-Storm-001 25,000 Storm Water BMP Study/Construction 17-Storm-001 Old Snelling Ave PMP w/ Bridge Reconstruction 17-Str-004 50,000 Future PMP 18-Str-005 200,000 200,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 555,000 Surface Water Project (Undetermined)18-Storm-001 200,000 Actual CIP (2018 Dollars)2018 755,000 125,000 200,000 0 200,000 Percent Inflation 3%3%3%3%3% Inflated Project Costs 755,000 128,750 212,180 - 225,102 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 0 0 0 0 0 15-Year Term 0 0 0 0 0 Storm Water Utility –Cash Flows 33 City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 3.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% Operating Revenues 812,044 837,717 839,740 847,922 856,373 864,895 873,574 882,324 891,158 900,063 909,038 918,084 Operating and Maintenance Expense 390,935 405,735 489,764 504,457 519,591 535,178 551,234 567,771 584,804 602,348 620,418 639,031 Net Before Debt Service 421,109 431,982 349,976 343,465 336,783 329,717 322,340 314,553 306,354 297,715 288,620 279,053 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Total Debt Service 0 0 0 0 0 0 0 0 0 0 0 0 Net Revenues 421,109 431,982 349,976 343,465 336,783 329,717 322,340 314,553 306,354 297,715 288,620 279,053 Interest Income 3,862 13,777 5,000 2,738 4,531 5,220 8,482 8,879 11,997 10,573 13,502 11,603 Transfers Out (65,499)(65,499)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000) Other Non Operating Revenues/(Expenses)770 0 0 0 0 0 0 0 0 0 0 0 Net Annual Cash Flow 360,242 380,260 280,976 272,203 267,314 260,937 256,823 249,432 244,351 234,288 228,122 216,656 Capital Projects (108,022)0 (755,000)(128,750)(212,180)0 (225,102)0 (358,216)0 (380,031)0 Bond Proceeds 0 0 0 0 0 0 0 0 0 0 0 0 Net Cash Flow after Capital Projects 252,220 380,260 (474,024)143,453 55,134 260,937 31,721 249,432 (113,865)234,288 (151,909)216,656 Ending Cash Balance 312,817 693,077 219,053 362,506 417,640 678,577 710,298 959,730 845,865 1,080,153 928,244 1,144,900 Targeted Working Capital 234,483 241,883 284,882 293,428 302,231 311,298 320,637 330,256 340,164 350,369 360,880 371,706 Unrestricted Cash Over/(Under) Target 78,335 451,195 (65,829)69,077 115,408 367,279 389,661 629,474 505,701 729,784 567,364 773,194 Projected STORM WATER FUND Proposed Quarterly Rate Increase Storm Water Utility –Cash Flows UPDATED 34 City of Arden Hills, MN Actual Estimated Description 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% Operating Revenues 812,044 837,717 831,549 839,647 848,028 856,480 865,002 873,681 882,431 891,265 900,169 909,145 Operating and Maintenance Expense 390,935 405,735 489,764 504,457 519,591 535,178 551,234 567,771 584,804 602,348 620,418 639,031 Net Before Debt Service 421,109 431,982 341,785 335,190 328,438 321,302 313,769 305,910 297,627 288,917 279,751 270,114 Existing Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Projected Debt Service (P&I)0 0 0 0 0 0 0 0 0 0 0 0 Total Debt Service 0 0 0 0 0 0 0 0 0 0 0 0 Net Revenues 421,109 431,982 341,785 335,190 328,438 321,302 313,769 305,910 297,627 288,917 279,751 270,114 Interest Income 3,862 13,777 5,000 2,636 4,324 4,907 8,059 8,343 11,346 9,806 12,615 10,594 Transfers Out (65,499)(65,499)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000)(74,000) Other Non Operating Revenues/(Expenses)770 0 0 0 0 0 0 0 0 0 0 0 Net Annual Cash Flow 360,242 380,260 272,785 263,826 258,762 252,208 247,828 240,253 234,973 224,723 218,366 206,708 Capital Projects (108,022)0 (755,000)(128,750)(212,180)0 (225,102)0 (358,216)0 (380,031)0 Bond Proceeds 0 0 0 0 0 0 0 0 0 0 0 0 Net Cash Flow after Capital Projects 252,220 380,260 (482,215)135,076 46,582 252,208 22,726 240,253 (123,242)224,723 (161,665)206,708 Ending Cash Balance 312,817 693,077 210,862 345,938 392,520 644,729 667,454 907,708 784,466 1,009,189 847,524 1,054,232 Targeted Working Capital 234,483 241,883 284,882 293,428 302,231 311,298 320,637 330,256 340,164 350,369 360,880 371,706 Unrestricted Cash Over/(Under) Target 78,335 451,195 (74,020)52,510 90,289 333,430 346,817 577,452 444,302 658,820 486,644 682,525 Proposed Quarterly Rate Increase Projected STORM WATER FUND Impact on Storm Water Fund 35 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Impact on Storm Water Fund UPDATED 36 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Storm Water Rates 37 Existing 2017 Rate Proposed 2018 Rate 1 Residential (Per Lot)14.72$ 15.16$ 2 Townhomes (Per Lot)19.08 19.65 3 Apartments (Per Acre)120.11 123.71 4 Condos (Per Acre)120.11 123.71 5 Commercial (Per Acre)187.52 193.15 6 Bethel University (Per Acre)187.52 193.15 7 Boston Scientific (Per Acre)187.52 193.15 8 Undeveloped (Per Acre)22.06 - 9 Undeveloped Residential (Per Acre)22.06 - Current Rate Structure •Per request, 2018 rates increased 3% (instead of 2%) for 2018 Additional 1% not required to maintain sufficient cash balances •Undeveloped classifications eliminated Proposed Storm Water Rates UPDATED 38 •Per request, 2018 rates increased 2% for 2018 •Undeveloped classifications eliminated Existing 2017 Rate Proposed 2018 Rate 1 Residential (Per Lot)14.72$ 15.01$ 2 Townhomes (Per Lot)19.08 19.46 3 Apartments (Per Acre)120.11 122.51 4 Condos (Per Acre)120.11 122.51 5 Commercial (Per Acre)187.52 191.27 6 Bethel University (Per Acre)187.52 191.27 7 Boston Scientific (Per Acre)187.52 191.27 8 Undeveloped (Per Acre)22.06 - 9 Undeveloped Residential (Per Acre)22.06 - Current Rate Structure Proposed Bonding –Sewer and Water 39 Year Water Fund Sewer Fund Storm Water Fund Total All Funds 2017 -$ -$ -$ -$ 2018 2,000,000 525,000 - 2,525,000 2019 - - - - 2020 - 1,100,000 - 1,100,000 2021 - - - - 2022 - 900,000 - 900,000 2023 - - - - 2024 - - - - 2025 - 500,000 - 500,000 2026 - - - - TOTAL 2,000,000$ 3,025,000$ -$ 5,025,000$ Proposed Bonding –Sewer and Water UPDATED 40 Year Water Fund Sewer Fund Storm Water Fund Total All Funds 2017 -$ -$ -$ -$ 2018 2,500,000 525,000 - 3,025,000 2019 - - - - 2020 - 1,100,000 - 1,100,000 2021 - - - - 2022 - 900,000 - 900,000 2023 - - - - 2024 - - - - 2025 - 500,000 - 500,000 2026 - - - - TOTAL 2,500,000$ 3,025,000$ -$ 5,525,000$ Sample Bill Impact –Residential Accounts 41 Type Low Median High Very High Sample 2017 Usage 5,883 12,506 19,172 40,917 Winter Average 4,462 8,424 22,973 42,548 Meter Size 5/8"5/8"5/8"5/8" Water Portion 48.74$ 68.80$ 92.27$ 184.78$ Sewer Portion 92.61 92.61 135.11 239.44 Storm Sewer Portion 14.72 14.72 14.72 14.72 Total Utility Bill 156.07$ 176.13$ 242.10$ 438.94$ Total Water 55.44$ 77.42$ 103.15$ 204.60$ Total Sewer 69.39$ 89.79$ 164.72$ 265.53$ Total Storm Sewer 15.16$ 15.16$ 15.16$ 15.16$ Total Bill 139.99$ 182.37$ 283.03$ 485.29$ Total Water 55.44$ 77.42$ 103.15$ 204.60$ Total Sewer 96.31$ 96.31$ 140.48$ 248.93$ Total Storm Sewer 15.16$ 15.16$ 15.16$ 15.16$ Total Bill 166.91$ 188.89$ 258.79$ 468.69$ 2018 Option #1: Combine Water Meter & Standby Charges; New Sewer Structure Residential Accounts Existing 2017 Rate Structure 2018 Option #2: Combine Water Meter & Standby Charges; Existing Sewer Structure Only users whose bills decrease -they no longer subsidize all other users Type Low Median High Very High Sample 2017 Usage 5,883 12,506 19,172 40,917 Winter Average 4,462 8,424 22,973 42,548 Meter Size 5/8"5/8"5/8"5/8" Water Portion 48.74$ 68.80$ 92.27$ 184.78$ Sewer Portion 92.61 92.61 135.11 239.44 Storm Sewer Portion 14.72 14.72 14.72 14.72 Total Utility Bill 156.07$ 176.13$ 242.10$ 438.94$ Total Water 55.56$ 77.67$ 103.54$ 205.54$ Total Sewer 72.98$ 93.38$ 168.31$ 269.12$ Total Storm Sewer 15.01$ 15.01$ 15.01$ 15.01$ Total Bill 143.55$ 186.06$ 286.86$ 489.67$ Total Water 55.56$ 77.67$ 103.54$ 205.54$ Total Sewer 98.63$ 98.63$ 143.92$ 255.10$ Total Storm Sewer 15.01$ 15.01$ 15.01$ 15.01$ Total Bill 169.20$ 191.31$ 262.47$ 475.65$ 2018 Option #2: Combine Water Meter & Standby Charges; Existing Sewer Structure Residential Accounts Existing 2017 Rate Structure 2018 Option #1: Combine Water Meter & Standby Charges; New Sewer Structure (REVISED) Sample Bill Impact –Residential Accounts UPDATED 42 Low Users bills still decrease, but not as much. All users pay for what they actually use. Sample Bill Impact –Commercial Accounts 43 Type Low Median High Very High Large Meter Sample 2017 Usage 28,009 133,709 796,755 2,148,168 6,511,731 Winter Average 28,009 133,709 796,755 2,148,168 5,629,331 Meter Size 3/4"1.5"3.0"6.0"2.0", 3.0" & 10.0" Water Portion 123.37$ 862.05$ 5,315.18$ 14,450.83$ 45,044.24$ Sewer Portion 161.61 771.50 4,597.28 12,394.93 32,481.24 Storm Sewer Portion 131.98 330.04 7,500.80 3,442.87 34,534.54 Total Utility Bill 416.96$ 1,963.59$ 17,413.26$ 30,288.63$ 112,060.02$ Total Water 137.26$ 1,102.40$ 5,889.32$ 16,430.71$ 49,521.01$ Total Sewer 190.66$ 735.01$ 4,149.70$ 11,109.48$ 29,130.28$ Total Storm Sewer 134.62$ 336.64$ 7,650.82$ 3,511.73$ 35,225.23$ Total Bill 462.54$ 2,174.05$ 17,689.84$ 31,051.92$ 113,876.52$ Total Water 137.26$ 1,102.40$ 5,889.32$ 16,430.71$ 49,521.01$ Total Sewer 168.05$ 802.25$ 4,780.53$ 12,889.01$ 33,775.99$ Total Storm Sewer 134.62$ 336.64$ 7,650.82$ 3,511.73$ 35,225.23$ Total Bill 439.93$ 2,241.29$ 18,320.67$ 32,831.45$ 118,522.23$ Existing 2017 Rate Structure 2018 Option #1: Combine Water Meter & Standby Charges; New Sewer Structure 2018 Option #2: Combine Water Meter & Standby Charges; Existing Sewer Structure Commercial Accounts Type Low Median High Very High Large Meter U.S. Army Sample 2017 Usage 28,009 133,709 796,755 2,148,168 6,511,731 162,153 Winter Average 28,009 133,709 796,755 2,148,168 5,629,331 162,153 Meter Size 3/4"1.5"3.0"6.0"2.0", 3.0" & 10.0"12" Water Portion 123.37$ 862.05$ 5,315.18$ 14,450.83$ 45,044.24$ 6,248.84$ Sewer Portion 161.61 771.50 4,597.28 12,394.93 32,481.24 935.62 Storm Sewer Portion 131.98 330.04 7,500.80 3,442.87 34,534.54 6,400.06 Total Utility Bill 416.96$ 1,963.59$ 17,413.26$ 30,288.63$ 112,060.02$ 13,584.52$ Total Water 137.82$ 1,107.04$ 5,920.49$ 16,515.93$ 49,780.77$ 9,137.12$ Total Sewer 194.25$ 738.60$ 4,153.29$ 11,113.07$ 29,141.05$ 885.09$ Total Storm Sewer 134.62$ 336.64$ 7,650.82$ 3,511.73$ 35,225.23$ 6,528.06$ Total Bill 466.69$ 2,182.28$ 17,724.60$ 31,140.73$ 114,147.05$ 16,550.27$ Total Water 137.82$ 1,107.04$ 5,920.49$ 16,515.93$ 49,780.77$ 9,137.12$ Total Sewer 172.26$ 822.31$ 4,900.04$ 13,211.23$ 34,620.39$ 997.24$ Total Storm Sewer 134.62$ 336.64$ 7,650.82$ 3,511.73$ 35,225.23$ 6,528.06$ Total Bill 444.70$ 2,265.99$ 18,471.35$ 33,238.89$ 119,626.39$ 16,662.42$ 2018 Option #2: Combine Water Meter & Standby Charges; Existing Sewer Structure Commercial Accounts Existing 2017 Rate Structure 2018 Option #1: Combine Water Meter & Standby Charges; New Sewer Structure (REVISED) Sample Bill Impact –Commercial Accounts UPDATED 44 Conclusions –Base Model (Doesn’t Include TCAAP) •2018 Rate Increase Recommendations: –Water Fund: 6% UPDATED: 6.5% –Sewer Fund: 4% UPDATED: 6.5% –Storm Water Fund: 2% (instead of 3% requested) •2018 Bonding Recommendations: –Water Fund: $3.0 million (instead of $2.0 million)UPDATED: $2.5 MILLION –Sewer Fund: $525,000 •Two Rate Structure Options for Sewer: –Option #1: (Recommended) •Eliminate 15,000 gallon minimum and incorporate Base Charges for all accounts (including commercial) •UPDATED: Increase Base Charge from $46.41 to $50.00 per quarter –Option #2: •Stay with existing rate structure 45 Next Steps 1.Incorporate proposed rate increases for all utility funds for 2018 as shown 2.Ehlers will take this “Base Model” and use it to build the “Development Model” that incorporates TCAAP –Water tower construction –Other new infrastructure –Projected new development –Impacts on utility funds 3.Ehlers will come back to Council to discuss “Development Model” 46 (651) 697-8506 skvilvang@ehlers-inc.com Stacie Kvilvang Sr. Municipal Advisor/Director (651) 697-8571 jvogt@ehlers-inc.com Jeanne Vogt Sr. Financial Specialist 47 Page 1 of 1 AGENDA ITEM – 1D MEMORANDUM DATE: April 16, 2018 TO: City Councilmembers Dave Perrault, City Administrator FROM: Mayor Grant SUBJECT: Staff Recommendations on Planning Cases Budgeted Amount: Actual Amount: Funding Source: $ $ Council Should Consider N/A Background/Discussion Planning staff recommendations will be discussed at the work session. Page 1 of 1 AGENDA ITEM – 1E MEMORANDUM DATE: April 16, 2018 TO: Honorable Mayor and City Council Dave Perrault, City Administrator FROM: Matthew Bachler, City Planner SUBJECT: Old Highway 10 Mail Delivery Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Background In 2016, the City of Mounds View renamed the segment of County Road Highway 10 within their jurisdiction to Mounds View Boulevard. This same roadway continues south into Arden Hills where it is named Old Highway 10. There are 16 properties in Arden Hills with an address on Old Highway 10 between Highway 96 and Interstate 694. It appears an error occurred when the U.S. Postal Service updated their database for the name change approved by Mounds View and the new street name was also applied to these 16 properties in Arden Hills. Staff has heard from two residents on Old Highway 10 who have experienced difficulties with mail and package delivery as a result of this, however additional residents may have been impacted as well. Staff contacted the Address Management Systems division of the U.S. Postal Service on April 10, 2018 and provided them with a list of the 16 properties with an address on Old Highway 10. A verbal update on the status of the property address correction will be provided at the Work Session meeting. Staff has also spoken with the post office in New Brighton and learned that the local mail carriers are aware of the issue and have been delivering mail through the postal service to properties on Old Highway 10 as usual. Emergency service providers rely on property address information from Ramsey County. From reviewing Ramsey County records, there has been no change to the property addresses on Old Highway 10 in Arden Hills and this issue has not had an impact on emergency response services. Page 1 of 1 AGENDA ITEM – 1F MEMORANDUM DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Dawn Skelly, Communications Coordinator SUBJECT: Communications Update Budgeted Amount: Actual Amount: Funding Source: $11,557 $15,235 Salary Allocation Council Should Consider Reviewing website progress report and request for additional staff time to complete website milestones. Background/Discussion Dawn will review progress from the request for the additional 90 hours of staff time to move ahead with the web redesign project. She will also review a request for additional funds for additional hours to complete the web project. In addition, a short review of newsletter content will show progress toward communicating about recent developments, as requested by the Council during the retreat. Page 1 of 2 AGENDA ITEM – 1G MEMORANDUM DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Julie Hanson, City Clerk SUBJECT: 2018 Elections Process – Early Voting Budgeted Amount: Actual Amount: Funding Source: $ $ $ Council Should Consider Providing direction to staff regarding the early voting process. Background/Discussion As you are aware, the City currently has a contract with Ramsey County to administer its elections. Early voting, while administered by Ramsey County, is also administered by City Hall staff for Arden Hills residents (early voting is the period six days prior to both the State primary and General election). In 2017, the County expanded voting locations for all Ramsey County residents. Residents could cast their vote at any one of a handful of locations staffed by Ramsey County, no matter what city they resided in within Ramsey County. Due to the success of the convenience afforded voters last year, Ramsey County has expanded these “satellite” locations even more for the 2018 election season. All Ramsey County residents will now be able to cast their ballot at any of the following locations: City of Saint Paul Ramsey County Elections Highland Park Community Center Martin Luther King Recreation Center Como Park Historic Streetcar Station Arlington Hills Community Center Ramsey County Library–White Bear Lake Ramsey County Library–Maplewood Ramsey County Library–Shoreview Ramsey County Library–Roseville Ramsey County Public Works–Arden Hills St Anthony City Hall–St Anthony Page 2 of 2 Ramsey County expanded the locations for elections administration for convenience to the voters but also because feedback from various cities following the 2016 election process included the challenge of managing the day-to-day City operations and regular workload while administering elections. Many cities also found it challenging to manage the crowds relating to how their City Hall is set up (front desk disruption while conducting regular City Hall business, adequate space for voters, etc.). Staff is asking the Council for direction as to whether or not they wish to continue to have City staff administer early voting at City Hall, or in the alternative, to relinquish this activity to Ramsey County. Note that one of the voting locations is near City Hall ~ at the Ramsey County Public Works facility in Arden Hills. Ramsey County has asked for a decision by April 30, so staff is requesting Council make its decision regarding this matter at the April 16 work session. DATE: April 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: 2018 Compensation Study Budgeted Amount: Actual Amount: Funding Source: N/A $2,300 General Fund Council Should Consider The Council should provide further direction on the proposed compensation study. Background At the 2018 City Council retreat, the City Council directed staff to begin the process for a compensation study. George Gmach was identified as a potential consultant to facilitate the process. The City has received a Proposal from Mr. Gmach (see Attachment A). City Staff is recommending the City utilize all of the services listed totaling $2,200 ($1,900 if the Council decides to exclude optional services). The City Council also directed the Financial Planning and Analysis Committee (FPAC) to be the lead on this project. A tentative schedule is listed below. If the City Council would like to move forward with the proposal, it will be brought forward at the next City Council meeting for approval. Schedule April 26 – City Council approval May 1 – Kickoff meeting with FPAC and Mr. Gmach May thru June – Information gathering and analysis by Mr. Gmach Early July – Presentation to FPAC Mid July – FPAC presentation to the City Council Attachme nt Attachment A: RFP for Compensation Study AGENDA ITEM –1H MEMORANDUM George Gmach Compensation Consulting, LLC 22600 Oakdale Drive, Rogers, MN 55374 george.gmach@icloud.com April 3, 2018 Dave Perrault, MBA, MPA City Administrator City of Arden Hills Email: dperrault@cityofardenhills.org Dear Dave, I am providing the following proposal relating to a market study for the City of Arden Hills. My understanding is that there are 17 different jobs, all of which have reasonably recent job descriptions. I also understand that the city is billed for employee healthcare on an individual employee basis determined by age. The city leadership team wants a study that contrasts Arden Hills total pay practices with a reasonable group of cities in the area. Total pay for purposes of the study means cash payments, health and welfare benefits and paid time off. Some city employees are represented by the 49ers for purposes of collective bargaining. The city is required to comply with pay equity statutes. Thus, any actions contemplated as a result of the study should be tested to determine whether compliance is maintained post implementation. Evaluating jobs to establish a logical hierarchy is an option that can be performed at the same time. Activity Hours Cost Gather information about the city functions and jobs in preparation for market analysis and subsequent activities. This includes job description review and benefit plan review. 2 $200 Prepare a table showing comparative demographic and economic information for potential peer market comparison. This data will be gathered from multiple sources and peers will be recommended based on the greatest similarities. Geographic location is significant for some jobs and may mean looking at some larger neighbors. The table will be used along with historical city practices to develop a short list of about 10 -12 most logical peers. 1 $100 Gather market data for key benchmark jobs. These are jobs that are most directly compared to jobs in other peer market employers. This can begin as soon as there is sufficient job information to select and describe benchmarks. A survey will be prepared to send to peers. Participants will get a f ree copy of the summary report. 6 $600 Gather policy and benefit information from peer organizations to facilitate comparison with Arden Hills. 4 $400 Evaluate jobs using a point factor system for internal equity. The hours are reduced since job will already be reviewed. (Optional) 2 $200 George Gmach Compensation Consulting, LLC 22600 Oakdale Drive, Rogers, MN 55374 george.gmach@icloud.com Prepare a report that contrasts the current grade structure with data from peer jurisdictions. 2 $200 Test for pay equity compliance. (optional) 1 $100 Meet with city officials to present the plan (includes mileage and travel time in the hourly rate). 4 $400 Total (excludes optional activities) 19 $1,900 This is a total turnkey not to exceed. I have calculated hours on the low side and anticipate some pro bono hours to complete the project. My background includes over 32 years of experience working with public sector compensation research and consulting, including most of that time in a senior management role. I served 20 years as a city council member in a city over 5,000 in population. I am semi-retired and now limit my projects to cities and counties in Minnesota. If you decide to use my services and we start by May 1, I anticipate a completed project by mid-July. Thanks for your consideration! Sincerely, George B. Gmach Consultant