City Council Workshop

10801 Town Square Drive 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, October 15, 2015 6:30 PM Cloverleaf Farm Room A NOTICE OF WORKSHOP MEETING 1 Call to Order The meeting was called to order by Mayor Ryan at 6:30 p.m. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Clark Arneson; City Attorney Patrick Sweeney; Planning and Community Development Director Bryan Schafer; Public Services Manager Bob Therres; Finance Director Joe Huss; Financial Analyst Ward Brown; Police Chief/Safety Services Manager Chris Olson; Recreation Manager Nate Monahan; Communications Technician Roark Haver; Senior Engineering Technician Jason Sundeen; City Clerk Catherine Sorensen; and Recording Secretary Linda Dahlquist. Present: 7 - Mayor Ryan, Councilmember Hovland, Councilmember Swanson, Councilmember Clark, Councilmember Bourke, Councilmember Herbst, and Councilmember King 3 New Business 3-1 WS 15-55 2016 PROPOSED BUDGETS - WATER UTILITY FUND; AND SANITARY SEWER UTILITY FUND Finance Director Huss gave an overview of the preliminary budget for the Water Utility Fund, which is a division of the City’s Public Services Department. He noted the Water Utility is designed to recover costs through user fees and provides service to 96% of Blaine. He gave an overview of the operating revenues and operating expenses. He commented a slight increase in operating revenues of 1.1% and operating expenditures 1.4% is projected for 2017. Councilmember Bourke asked if trunk oversizing budget is just for one project. Finance Director Huss replied trunk oversizing budget is for the entire City. City of Blaine Page 1 City Council Workshop Minutes - Final October 15, 2015 Finance Director Huss stated the five year projection for operations is for no additional staffing, potential net operating losses are projected in 2018, and a rate increase tier adjustment in 2018. He noted the City has 22 wells to maintain. Councilmember Hovland asked about the treatment plant’s water lines being restricted. Public Services Manager Therres stated once the plant goes in there is a two year period the clean water breaks down the buildup in the lines. He noted staff is working on a water line cleaning program. Finance Director Huss stated staff is recommending no adjustment in water service fees and 2% increase in WAC per 2004 Water CIP for 2016. Finance Director Huss gave an overview of the preliminary budget for the Sanitary Sewer Utility Fund, which is a division of the City’s Public Services Department. He noted the Sanitary Sewer Utility is designed to recover costs through user fees and provides service to over 96% of Blaine. Council discussion on the Met Council Environmental Services (MCES) charges. Councilmember Hovland asked about slip lining. Public Services Manager Therres replied all the slip lining that was planned is done. He stated there are funds to do the larger pipes in commercial areas. Councilmember Hovland asked about flow speeds. Public Services Manager Therres replied the Met Council has been aggressive with the cities on inflow and infiltration problems. He noted Blaine has a newer system and does not have inflow or infiltration problems. Finance Director Huss stated the five year operations projection is for no additional staffing, a rate increase of $1/month for 2016-2019, MCES Disposal charge increase of 5% annually, and depreciation increase of 4% annually as system expands. He gave an overview of the capital improvements plan that includes equipment, mainline rehabilitation/lining, lift station improvements, Districts 6 and 7 trunk extensions, and share of SCADA improvements. Councilmember Bourke asked if staff has too many capital improvement projects planned for 2016. Finance Director Huss replied the largest project is slip lining which will now extend to the larger pipes. Discussed 3-2 WS 15-56 2015 CIF PARK PROJECT POWER POINT City of Blaine Page 2 City Council Workshop Minutes - Final October 15, 2015 Recreation Manager Monahan gave an overview of the 2015 CIF Park improvement projects. He noted the approved funds were used in 26 parks. Informational; no action required. OTHER BUSINESS Councilmember Clark requested staff initiate a petition to the residents living between Lexington Avenue and Sunset Avenue on extending the utilities north of 125th Avenue. Councilmember Swanson commented a resident has to hand-carry the petition to the neighborhood and that it should not be done by the City. City Manager Arneson commented this action could send a confusing message to the residents if the City were to petition the residents to petition the City. Council consensus was to discuss this item further at a future workshop. ADJOURN The Workshop adjourned at 7:35 p.m. Adjourned City of Blaine Page 3