City Council Workshop

10801 Town Square Dr. City of Blaine Blaine MN 55449 Anoka County, Minnesota Minutes - Final City Council Workshop *While this is a public meeting where interested persons are welcome to attend, it is a work session for Council and staff to discuss issues before them. It is not for the purpose of receiving public input. Thursday, December 5, 2013 6:30 PM Cloverleaf Farm Room A Meeting Number 13-60 NOTICE OF WORKSHOP MEETING The meeting was called to order by Mayor Ryan at 6:30 p.m. Quorum Present. ALSO PRESENT: Clark Arneson, City Manager; Patrick Sweeney, City Attorney; Bryan Schafer, Planning Director; Bob Therres, Public Services Manager; Joe Huss, Finance Director; Ward Brown, Budget/Fiscal Analyst; Chris Olson, Police Chief/Safety Services Manager; Dennis Peters, I.T. Director; Rebecca Olson, City Manager Assistant; Roark Haver, Communications Technician; and Jane Cross, City Clerk, Recording Secretary Linda Dahlquist. Present: 6 - Councilmember Clark, Councilmember Kolb, Councilmember Bourke, Councilmember Herbst, Mayor Ryan, and Councilmember Swanson Absent: 1 - Councilmember Hovland 1. WS 13-74 2014 PROPOSED BUDGETS - WATER UTILITY FUND; AND SANITARY SEWER UTILITY FUND Sponsors: Huss Attachments: 2014 Water Fund Overview 2014 Sewer Fund Overview Finance Director Huss gave an overview of the preliminary budgets for the Water Utility Fund and the Sanitary Sewer Utility Fund, which are divisions of the City’s Public Services Department. Finance Director Huss stated the Water Utility Division employs 8.25 full-time equivalent staff, provides water to 95% of the citizens of Blaine and is self-funding from user fees. He stated revenues for 2013 are expected to City of Blaine Page 1 City Council Workshop Minutes - Final December 5, 2013 exceed the budgeted amounts due to higher than anticipated water sales. He noted that the 2014 revenues are budgeted to decline slightly from the 2013 projection. He stated no rate adjustment is recommended for 2014. He stated the budgeted operating expenses are proposed to increase over 2013’s budget, which includes a general wage increase for personnel services. He noted that the supplies budget was increased to purchase water meters, cover higher electricity costs, and for the hosted automated meter reading system. He also noted that the administrative charges paid to the General Fund will have a small increase. He stated capital improvements will continue as stated in the improvement plan. He noted capital expenditures of $843,000 are scheduled for 2014 for four new wells, maintenance of wells 11 and 13, water main over-sizing, and cleaning the exterior of Tower #2, capital equipment replacement, and debt service principal and interest. Councilmember Clark arrived at 6:38 p.m. Finance Director Huss stated that the 5-year operating plan indicates no immediate need to adjust water fee rates. He noted that in order to fund future system expansion, staff is recommending WAC fees be increased by 2% starting in 2015. Councilmember Bourke asked if operating costs will be higher starting in 2014. Finance Director Huss replied yes, due to contractual services (water chemicals, etc.). He stated staff estimated the percentage of growth. Councilmember Clark asked about expenditures in 2014-2017. Finance Director Huss stated the costs are for building the infrastructure of the four new wells and the new water treatment plant. Mayor Ryan asked about the sewer payments made to the City of Lexington. Finance Director Huss stated payments of $50,000 are made to the City of Lexington annually. Finance Director Huss stated the Sanitary Sewer Division employs 3.75 full-time equivalent staff, provides sanitary sewer service to over 95% of the citizens of Blaine and is self-funding from user fees. He stated for revenues the staff projection for the fund would be a rate increase in the next two years to meet financial goals over the coming five-year period. He stated expenses for 2014 are expected to increase by 8.3% and personnel costs to increase by 4%. He noted that the allocation of contractual services is expected to decrease by 5%. He stated staff projections for capital improvements include $2.5 million in improvements. He stated the staff’s 5-year projection includes increased operating expenses for 2013 and 2014, and proposes increasing City of Blaine Page 2 City Council Workshop Minutes - Final December 5, 2013 MCES costs starting in 2015. Councilmember Bourke requested details of what falls under the other expenditure category. Councilmember Clark questioned the City’s rate of flow amount. Finance Director Huss stated Blaine is charged a percentage of flow compared to the whole metro area. He stated staff has requested data from the Met Council. He noted that the City’s flow seems to be higher and is concerned that the City of Lexington may be included in Blaine’s flow percentage. Discussed 2. WS 13-75 DISCUSSION ON COUNCIL IPADS Sponsors: City Manager Arneson City Manager Assistant Olson stated the City uses Legistar, an automated workflow management system for Council items. She stated staff has been testing the use of the system and its iLegislate app since February. She gave an overview of the iLegislate app. City Manager Assistant Olson gave an overview of the iPad and iLegislate application. Councilmember Clark asked if using an iPad would be cost effective. I.T. Director Peters replied the iPads are cheaper than a laptop. City Manager Assistant Olson commented iPads do not replace laptops. City Manager Arneson stated the Council members who want to use the iPads will receive paper copies for a time period to be determined by each Council member. Councilmember Swanson stated his Wi-Fi is questionable in some areas. City Manager Assistant Olson replied once the agenda is downloaded onto the iPad access to internet is not necessary. Councilmembers Clark, Bourke, Kolb will trial iPad. Councilmember Swanson would prefer a larger screened iPad. Staff will check into the cost of printers for iPads. Discussed OTHER Councilmember Swanson stated he spoke with some residents that live on City of Blaine Page 3 City Council Workshop Minutes - Final December 5, 2013 Ball Road, North Road, Lever, and Lexington at an open house last week. He requested staff schedule a meeting with the neighborhood to discuss closing off Marmon. City Manager Arneson suggested scheduling an open house for January 7, 2014 ADJOURN The Workshop adjourned at 7:30 p.m. City of Blaine Page 4