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CITY COUNCIL WORK SESSION February 4,2013 <br /> APPROVED <br /> 1 CITY OF LINO LAKES <br /> 2 MINUTES <br /> ',-- 3 <br /> 4 DATE : February 4,2013 <br /> 5 TIME STARTED : 5:30 p.m. <br /> 6 TIME ENDED : 10:00 p.m. <br /> 7 MEMBERS PRESENT : Council Member Stoesz, O'Donnell, <br /> 8 Rafferty (arrived at 5:45 pm), Roeser and <br /> 9 Mayor Reinert <br /> 10 MEMBERS ABSENT : None <br /> 11 <br /> 12 <br /> 13 Staff members present: City Administrator Jeff Karlson; Economic Development <br /> 14 Coordinator Mary Alice Divine; Environmental Coordinator Marty Asleson; Community <br /> 15 Development Director Michael Grochala; Public Services Director Rick DeGardner; <br /> 16 Public Safety Director John Swenson; Finance Director Al Rolek. <br /> 17 <br /> 18 1. Water and Sewer Utility Rate Study, Springsted Incorporated—Nick Dragisich <br /> 19 and Patty Kettels gave a PowerPoint presentation reviewing the results of the utility rate <br /> 20 study they produced. Mr. Dragisich reviewed the water rate section, noting that the last <br /> 21 time the city raised water rates was 2008. It was pointed out that water conservation <br /> 22 efforts can oddly result in a cost increase. Patty Kettels reviewed the sewer rate section. <br /> 23 <br /> 24 The Mayor suggested that the report recommends that the city raise rates as soon as <br /> 25 possible. He would prefer to do a"drill down" on costs included in the water and sewer <br /> 26 rates to see if there can be savings. He recommends looking at other cities to see what <br /> 27 they are doing right. A rate increase is never easy and he'd like to find another way to <br /> 28 meet the needs of the utility. Mr. Dragisich suggested that a drill down is a good exercise <br /> 29 and he'd recommend that the city look at other cities that are truly comparable to Lino <br /> 30 Lakes. Public Services Director DeGardner added that there are a lot of variables that <br /> 31 impact costs, including density, location of water, qualify of water, treatment needs, etc. <br /> 32 Mr. Dragisich noted that some of the biggest drivers of cost is depreciation and other <br /> 33 things that are not in the city's control; the sewer charges are mainly driven by the <br /> 34 Metropolitan Council. Council Member Roeser remarked that with interest rates close to <br /> 35 nothing, the city may be losing by putting aside money for the future of the system. <br /> 36 Finance Director Rolek noted some capital costs that are incurred regularly. <br /> 37 <br /> 38 The mayor said that more discussion is needed so he anticipates seeing the matter on a <br /> 39 future work session agenda. <br /> 40 <br /> 41 6. Adam Johnson Docks—Community Development Director Grochala explained that <br /> 42 Mr. Johnson, who has previously petitioned for a cartway, has now constructed two <br /> 43 docks, one on each side of the channel. The city doesn't have jurisdiction over the work <br /> 44 -the water way is controlled by the Minnesota Department of Natural Resources and <br /> 45 bridge permits fall under the Rice Creek Watershed District (RCWD). Mr. Grochala <br /> 1 <br />