CITY COUNCIL WORK SESSION MINUTES November 2, 2015 5:30 ...
CITY COUNCIL WORK SESSION MINUTES November 2, 2015 5:30 p.m. 1) Call to Order Mayor Whalen called the meeting to order at 5:30 p.m. Present – Council: Mayor Lisa Whalen, Patricia Thoele, Mark Vanderlinde, Pam Mortenson, and Bob Christians; Staff: City Administrator Michael Barone, Finance Director Brian Grimm, Community Development Director David Abel, Director of Public Safety Paul Falls, City Clerk Kris Linquist, and Public Works Superintendent Gary Peters; Consultant – City Engineer Paul Hornby, WSB Engineering. 2) Enterprise Fund Budgets a) Water Finance Director Grimm presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the projected 2016 Water Operational and Capital fund(s) budgets and activities. Highlights included the following: There were attachments to the memo which included: A water operational and improvement fund cash flow analysis as well as projected costs for the water CIP. This information was last reviewed earlier in the year when a decentralized method for water treatment was selected. Incorporate financing the Decentralized Gravity Filtration Plan using projected growth of 75 new homes (connections) a year. Main topics of the discussion will be funding the referenced improvements through projected rate adjustments as well as continuing to promote water conservation with the city. Staff is looking for Council feedback and direction as to funding the Water Funds so it can be incorporated and updated into the Long Range Utility Financial Plan. In order to fund some of the necessary water operational CIP activities, changes to the base water rate and tiered rate schedule are recommended as presented in the reports (4% increase for 2016).
Minnetrista Work Session Minutes – November 2, 2015
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With the proposed rate adjustments, the City’s water rates would still be comparable to what neighboring Cities are charging for this service.
Christians asked what it means to the end users. Grimm stated that the rate would go up whatever the percentage rate was set as. Mayor Whalen questioned if it would be possible to raise the rate of the connection fee so that it would be able lower the water rate increase. Thoele questioned if the City’s rates are similar to neighboring communities. Grimm stated that the rates are all over the board but the City is approximately in the middle of the pack. Grimm thought the City’s connection fees are a little on the high side but is comfortable with a 2% increase for connection fees and area charge and a 4% with water usage charge. Consensus was to go with a 2% increase for connection fees and area charge and a 4% for the water usage charge. b) Sewer Finance Director Grimm presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the Sanitary Sewer Fund as well as the proposed Sanitary Sewer CIP Fund and equipment/project listing. Highlights included the following: The City’s Sanitary Sewer utility rate has been $100 a quarter since January 2015. Staff would recommend keeping the sanitary sewer operational rate at $100 a quarter for 2016 and look at doing an incremental increase again for 2017 to help keep pace with costs and to provide a reasonable cash balance for the fund. One of the biggest costs in the fund is the Metropolitan Council Municipal Wastewater Charge (MCES) charge. This allocation to the City is decreasing from 2015 to 2016 based on their formula for apportioning out costs. Staff is recommending keeping the sanitary sewer operational fee at $100 a quarter for residential properties. The amount would be left at its current 2015 rate for the 2016 fee schedule unless other direction from the Council is received. Minnetrista Work Session Minutes – November 2, 2015
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Vanderlinde questioned why a dump truck is budgeted out of the sewer fund. Peters stated that most cities do it this way with certain departments pick up the cost for certain vehicles and are used for dual purpose throughout Public Work departments. Vanderlinde stated that not all residents have City sewer. Consensus was to keep the sanitary sewer operational fee at $100 a quarter for residential properties. c) Surface/Storm Water Finance Director Grimm presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the updated draft financial management plan for the surface/storm water fund. Highlights included the following: Staff is looking for Council feedback and direction as to the budgets and utility rates for 2016 Storm/Surface Water Funds, once determined it then can be incorporated and updated into the Long Range Utility Financial Plan. In order to fund some of the necessary sewer and storm water activities, Staff and Council should continue to analyze whether rate adjustments are needed. The draft included has a 10% increase to the storm water fee presented. This would bring the quarterly fee to $22 a quarter ($8 increase annually) from its current $20 a quarter fee. Even by doing this, if the Council chooses to do all the projects identified on the capital projects sheet, the fund would have a fairly low (under $100K) fund/cash balance from years 2016-2019. Mayor Whalen commented that some cities are using the tier system. Abel stated that there are approximately 3,000 parcels in the City and of those 3,000 parcels, between 2,600-2,700 parcels qualify as Surface/Storm water users and subject to the increase. Mayor Whalen would like to see some other options in 2016 for future potential increases. Mayor Whalen questioned if culvert improvements could be taken out of the roads fund instead of this fund. Peters stated that a culvert keeps the storm water run-off flowing down the ditches so it should be in this fund.
Minnetrista Work Session Minutes – November 2, 2015
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There was some discussion about Recycling costs. Grimm stated that it is locked in with a $.10 increase. Consensus was to go with a 10% increase for Surface/Stormwater fee. It would raise the fee from $20 (2015) to $22 (2016) per quarter resulting in an overall increase of $8 annually.
3) Kings Point Road Variance Extension Community Development Director Abel presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the request for an extension of a variance. Highlights included the following: David & Arlene Mueller received approval of a simple subdivision to adjust a lot line and lakeside setback variance on September 6, 2011. One parcel is vacant and received the lakeside setback variance. Variances are valid for one year and the Muellers requested extensions and were granted by Council. The current approval is valid until September 6, 2016. The Muellers are selling the vacant property and there is a potential closing on the property towards the end of November. Prior to closing, the potential new owners (Fred & Robyn Green) are looking for direction from the City Council regarding its willingness to provide them additional time beyond the September 6, 2016 deadline. The Greens would be looking to extend to September 2018 after closing on the property. Christians stated that he didn’t see any problem with granting the extension once the new owners apply. He liked the fact that there will eventually be a home on the vacant parcel. Mayor Whalen questioned if that was the only variance. Abel stated that the only variance was the Lakeside Setback Variance. Vanderlinde asked if the vacant parcel had its own PID number. Abel stated that it is in the R-1 zoning district and is a standalone parcel with its own PID number. He also stated that there is an easement for future road improvements. Consensus was that the variance extension would be granted once the new owners filled out the appropriate paper work and met all requirements.
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4) Pioneer-Sarah Creek WMO (Verbal) Community Development Director Abel explained that the City would like to move the area that is currently under the jurisdiction of the Pioneer-Sarah Creek Watershed Management Commission to the Minnehaha Creek Watershed District (MCWD). He stated that the Staff and the Mayor will meet with the MCWD on November 10, 2015 to see if there is a possibility of doing this and what the process would be. There was some discussion on whether the City needs to keep a representative on the board of the Pioneer-Sarah Creek WMO. There will be further discussion on this matter at a future meeting. 5) Adjourn Mayor Whalen adjourned the meeting at 6:43 p.m. Respectfully Submitted, Kris Linquist, City Clerk
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Minnetrista Work Session Minutes – November 2, 2015
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With the proposed rate adjustments, the City’s water rates would still be comparable to what neighboring Cities are charging for this service.
Christians asked what it means to the end users. Grimm stated that the rate would go up whatever the percentage rate was set as. Mayor Whalen questioned if it would be possible to raise the rate of the connection fee so that it would be able lower the water rate increase. Thoele questioned if the City’s rates are similar to neighboring communities. Grimm stated that the rates are all over the board but the City is approximately in the middle of the pack. Grimm thought the City’s connection fees are a little on the high side but is comfortable with a 2% increase for connection fees and area charge and a 4% with water usage charge. Consensus was to go with a 2% increase for connection fees and area charge and a 4% for the water usage charge. b) Sewer Finance Director Grimm presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the Sanitary Sewer Fund as well as the proposed Sanitary Sewer CIP Fund and equipment/project listing. Highlights included the following: The City’s Sanitary Sewer utility rate has been $100 a quarter since January 2015. Staff would recommend keeping the sanitary sewer operational rate at $100 a quarter for 2016 and look at doing an incremental increase again for 2017 to help keep pace with costs and to provide a reasonable cash balance for the fund. One of the biggest costs in the fund is the Metropolitan Council Municipal Wastewater Charge (MCES) charge. This allocation to the City is decreasing from 2015 to 2016 based on their formula for apportioning out costs. Staff is recommending keeping the sanitary sewer operational fee at $100 a quarter for residential properties. The amount would be left at its current 2015 rate for the 2016 fee schedule unless other direction from the Council is received. Minnetrista Work Session Minutes – November 2, 2015
Page 2
Vanderlinde questioned why a dump truck is budgeted out of the sewer fund. Peters stated that most cities do it this way with certain departments pick up the cost for certain vehicles and are used for dual purpose throughout Public Work departments. Vanderlinde stated that not all residents have City sewer. Consensus was to keep the sanitary sewer operational fee at $100 a quarter for residential properties. c) Surface/Storm Water Finance Director Grimm presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the updated draft financial management plan for the surface/storm water fund. Highlights included the following: Staff is looking for Council feedback and direction as to the budgets and utility rates for 2016 Storm/Surface Water Funds, once determined it then can be incorporated and updated into the Long Range Utility Financial Plan. In order to fund some of the necessary sewer and storm water activities, Staff and Council should continue to analyze whether rate adjustments are needed. The draft included has a 10% increase to the storm water fee presented. This would bring the quarterly fee to $22 a quarter ($8 increase annually) from its current $20 a quarter fee. Even by doing this, if the Council chooses to do all the projects identified on the capital projects sheet, the fund would have a fairly low (under $100K) fund/cash balance from years 2016-2019. Mayor Whalen commented that some cities are using the tier system. Abel stated that there are approximately 3,000 parcels in the City and of those 3,000 parcels, between 2,600-2,700 parcels qualify as Surface/Storm water users and subject to the increase. Mayor Whalen would like to see some other options in 2016 for future potential increases. Mayor Whalen questioned if culvert improvements could be taken out of the roads fund instead of this fund. Peters stated that a culvert keeps the storm water run-off flowing down the ditches so it should be in this fund.
Minnetrista Work Session Minutes – November 2, 2015
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There was some discussion about Recycling costs. Grimm stated that it is locked in with a $.10 increase. Consensus was to go with a 10% increase for Surface/Stormwater fee. It would raise the fee from $20 (2015) to $22 (2016) per quarter resulting in an overall increase of $8 annually.
3) Kings Point Road Variance Extension Community Development Director Abel presented the Staff report found in the Work Session Packet dated November 2, 2015. He overviewed the request for an extension of a variance. Highlights included the following: David & Arlene Mueller received approval of a simple subdivision to adjust a lot line and lakeside setback variance on September 6, 2011. One parcel is vacant and received the lakeside setback variance. Variances are valid for one year and the Muellers requested extensions and were granted by Council. The current approval is valid until September 6, 2016. The Muellers are selling the vacant property and there is a potential closing on the property towards the end of November. Prior to closing, the potential new owners (Fred & Robyn Green) are looking for direction from the City Council regarding its willingness to provide them additional time beyond the September 6, 2016 deadline. The Greens would be looking to extend to September 2018 after closing on the property. Christians stated that he didn’t see any problem with granting the extension once the new owners apply. He liked the fact that there will eventually be a home on the vacant parcel. Mayor Whalen questioned if that was the only variance. Abel stated that the only variance was the Lakeside Setback Variance. Vanderlinde asked if the vacant parcel had its own PID number. Abel stated that it is in the R-1 zoning district and is a standalone parcel with its own PID number. He also stated that there is an easement for future road improvements. Consensus was that the variance extension would be granted once the new owners filled out the appropriate paper work and met all requirements.
Minnetrista Work Session Minutes – November 2, 2015
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4) Pioneer-Sarah Creek WMO (Verbal) Community Development Director Abel explained that the City would like to move the area that is currently under the jurisdiction of the Pioneer-Sarah Creek Watershed Management Commission to the Minnehaha Creek Watershed District (MCWD). He stated that the Staff and the Mayor will meet with the MCWD on November 10, 2015 to see if there is a possibility of doing this and what the process would be. There was some discussion on whether the City needs to keep a representative on the board of the Pioneer-Sarah Creek WMO. There will be further discussion on this matter at a future meeting. 5) Adjourn Mayor Whalen adjourned the meeting at 6:43 p.m. Respectfully Submitted, Kris Linquist, City Clerk
Minnetrista Work Session Minutes – November 2, 2015
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