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CITY COUNCIL WORK SESSION February 4, 2013 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : February 4, 2013 4 TIME STARTED : 5:30 p.m. 5 TIME ENDED : 10:00 p.m. 6 MEMBERS PRESENT : Council M ember Stoesz , O’Donnell, 7 Rafferty (arrived at 5:45 pm), Roeser and 8 Mayor Reinert 9 MEMBERS ABSENT : None 10 11 12 Staff members present: City Administrator Jeff Karlson; Economic Development 13 Coordinator Mary Alice Divine; Environmental Coordinator Marty Asles on; Community 14 Development Director Michael Grochala; Public Services Director Rick DeGardner; 15 Public Safety Director John Swenson; Finance Director Al Rolek. 16 17 1. Water and Sewer Utility Rate Study, Springsted Incorporated – Nick Dragisich 18 and Patty Kettel s gave a PowerPoint presentation reviewing the results of the utility rate 19 study they produced. Mr. Dragisich reviewed the water rate section, noting that the last 20 time the city raised water rates was 2008. It was pointed out that water conservation 21 effo rts can oddly result in a cost increase. Patty Kettels reviewed the sewer rate section . 22 23 The Mayor suggested that the report recommends that the city raise rates as soon as 24 possible. He would prefer to do a “drill down” on costs included in the water and sewer 25 rates to see if there can be savings. He recommends looking at other cities to see what 26 they are doing right. A rate increase is never easy and he’d like to find another way to 27 meet the needs of the utility. Mr. Dragisich suggested that a drill d own is a good exercise 28 and he ’d recommend that the city look at other cities that are truly comparable to Lino 29 Lakes. Public Services Director DeGardner added that there are a lot of variables that 30 impact costs, includ ing density, location of water, qua lify of water, treatment needs, etc. 31 Mr. Dragisich noted that some of the biggest drivers of cost is depreciation and other 32 things that are not in the city’s control; the sewer charges are mainly driven by the 33 Metropolitan Council. Counc il Member Roeser remarked that with interest rates close to 34 nothin g, the city may be losing by putting aside money for the future of the system. 35 Finance Director Rolek noted some capital costs that are incurred regularly. 36 37 The mayor said that more discussion is needed s o he anticipates seeing the matter on a 38 future work session agenda. 39 40 6. Adam Johnson Docks – Community Development Director Grochala explained that 41 Mr. Johnson, who has previously petitioned for a cartway, has now constructed two 42 docks, one on each side of the channel. The city doesn’t have jurisdiction over the work 43 – the water way is controlled by the Minnesota Department of Natural Resources and 44 bridge permits fall under the Rice Creek Watershed District (RCWD). Mr. Grochala 45