HomeMy WebLinkAboutCity Council - 11/19/2013 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, NOVEMBER 19, 2013 CITY CENTER
5:00—6:25 PM, HERITAGE ROOMS
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher
Wickstrom, Kathy Nelson, and Ron Case
CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George
Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah,
Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City
Attorney Ric Rosow, and Recorder Lorene McWaters
Workshop - Heritage Room H
I. UTILITY OPERATIONS
Grant Meyer, with AE2S,presented the utility rate study his firm conducted for the City of
Eden Prairie. The objectives of the study were to:
• Review Water Utility Revenue Requirements
• Determine Irrigation Cost of Service
• Evaluate Water Utility Rate Structure Alternatives for both fixed charges and volumetric
charges
• Prepare a 10-year Revenue Adequacy Evaluation Model and Develop Rate Adjustment
Projections for Water, Sanitary Sewer and Storm Drainage
Meyer explained that utility rates are based on the costs of operation, maintenance and
replacement of capital equipment, regulatory compliance and customer service and
administration Meyer noted that the 2013 Annual Utility Rate Survey shows Eden Prairie's
combined water/sewer/wastewater rate is in the lower half of the 34 metropolitan
communities surveyed.
Meyer reviewed the cost of service analysis (COSA) AE2S performed for Eden Prairie. He
said the analysis shows that the cost percentage of irrigation vs. regular use is very close to
the revenue percentage of irrigation vs. regular use. He said they do not recommend any
adjustments to this.
Water Rates
The next portion of the analysis looked at revenue adequacy and proposed rate adjustments
based on a 10-year model. The financial models examine:
• Expenses, including operations and maintenance budgets, capital improvement projects,
and debt service obligations
• Revenue, including rate revenue and WAC/SAC
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November 19, 2013
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• Reserve funding
Based on the analysis of these three factors, AE2S developed rate adjustment scenarios.
Meyer said the current"repair and operating" (fixed) charge is $4.10. An increase of this
charge to $5.10 had previously been proposed for 2014; however, based on the analysis and
comparison with neighboring communities, the proposed increase has been reduced to $4.22.
Meyer said staff and the Conservation Commission expressed concern about raising the fixed
rate by a large amount, since such an increase would unfairly burdensome to 1- and 2-person
households.
The three rate water rate scenarios are as follows:
Scenario 1 —Current Structure: This scenario would maintain the current 5-tier rate
residential/irrigation rate structure.
Scenario 2 —Conservation Structure: This scenario was originally proposed by the
Conservation Commission and would equally distribute all accounts based on 4th quarter
usage.
Scenario 3 —Modified 5-Tier Structure: This scenario would institute a 5-tier structure with
a smaller first tier to recognize conservation.
Meyer said after reviewing the data, staff and the Conservation Commission are
recommending the modified 5-tier structure. The fifth tier is designed so that those who
irrigate to the point that the City requires additional infrastructure would cover those costs.
Future rate adjustments for the modified 5-tier scenario include a 3 percent annual increase in
the fixed base charge, and three to four percent increases in volumetric rates.
Sewer and Storm Drainage Utility Rates
The storm drainage utility rate analysis included both capital and operating projections from
the 10-year budget. Meyer noted that significant increases are planned for capital
expenditures. Revenue requirements resulted in a proposed rate of increase of 14 percent in
2014, tapering to 3 percent by 2020. AE2S is recommending 3 percent annual increases in
sewer rates,based on the anticipated rate of inflation.
City Manager Rick Getschow said the City Council will be asked to approve proposed water,
sewer and storm drainage rates at the December 3 Council Meeting. The rates will then be
approved on an annual basis.
II. BEE KEEPING ORDINANCE
Chief Reynolds distributed a draft bee keeping ordinance prepared by Zoning Administrator
Jim Schedin based on input the City Council provided at the April 16, 2013, Workshop.
Council Member Aho said the Ordinance seems long and complicated. He wondered if there
is a way it could be simplified. Chief Reynolds said the draft ordinance includes information
on best practices. He said this information can be extracted and placed in guidelines are
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November 19, 2013
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referenced in the ordinance. Getschow said the ordinance will be revised and presented to the
City Council for consideration in December or January.
Open Podium - Council Chamber
III. OPEN PODIUM
A. Friends of Red Rock Lake Association
Jim Bracke spoke on behalf of the association. He said the association feels it has
hit a roadblock with the Riley-Purgatory-Bluff Creek(RPBC) Watershed District
in dealing with the explosion of weeds in the lake. He said the volume of weeds
makes boating on the lake impossible. He said the association feels the lake has
not been a priority for the watershed district, and that not enough funds have been
allocated. He asked if the City would be willing to facilitate the association's
relationship with the watershed district. Mayor Tyra-Lukens asked staff to work
with the association and watershed district to find a way to move forward on these
issues.
B. Riley Pumatory Bluff Creek Watershed District—Clare Bleser
Clare Bleser said she has been the administrator for the watershed district for a
little over a year. She listed highlights of the watershed's activities over the past
year, including aquatic invasive species inspections and management of curly leaf
pondweed. She noted that the watershed has been working with the Riley Lake
Association on a vegetation control plan, and all but one property owner has
signed the agreement. She said watershed has begun the delisting process for Red
Rock Lake because it currently meets state standards.
C. Donna Azarian—Aquatic Expansion
Donna Azarian said she lives on Waverly Court. She asked the City Council to
address what she called the City's "unending spending spree." She said residents
are being taxed out of their homes, and they cannot afford a $16 million new pool
and rock climbing wall.
D. James Nelson—Emergency Pet Transport
James Nelson said he has had a veterinary practice in Eden Prairie for more than
25 years. His is the only clinic that provides emergency transport for injured pets.
He said is not confident the police and fire departments have had adequate
training in handling pet emergencies, other than those related to building fires. He
is particularly concerned about animals that are injured on roadways. He said he
would be willing to the provide tools and training necessary for care for injured
animals.
IV. ADJOURNMENT