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HomeMy WebLinkAbout05/02/1991 Council Minutes1 1 1 COUNCIL WORK SESSION CITY OF LINO LAKES COUNCIL MINUTES MAY 2, 1991 DATE TIME STARTED TIME ENDED • MEMBERS PRESENT: MEMBERS ABSENT : May 2, 1991 3:30 P.M. 4:50 P.M. Bisel, Kuether, Neal, Reinert Bohjanen Mayor Bisel called a work session of the Lino Lakes City Council to order on Thursday, May 2, 1991. Staff Members present: Administrator, Randy Schumacher; Engineer, Darrell Schneider; Public Works Director, Don Volk and Clerk- Treasurer, Marilyn Anderson. ACCEPTING BIDS FOR RESHANAU LAKE TRUNK UTILITIES Mr. Schneider explained that originally this matter was on the April 22, 1991 Council agenda and was tabled for further study. He used the overhead projector and explained some concerns that he wanted resolved before recommending awarding the bid for this improvement. Mr. Schneider explained that the project consists of three (3) divisions. The first division is from Ware Road to the new Centennial School on Birch Street. The second division is from the gravity trunk line through Birch Woods to the Fawn Lane lift station. The third division is from the new Centennial Elementary School to the Shenandoah lift station. Mr. Schneider explained that Metropolitan Waste Control Commission (MWCC) may move the Laurene Avenue lift station to the Ware Road location. A temporary sewer line will be constructed from the Ware Road lift station to Hodgson Road until the gravity line can be constructed from the Ware Road lift station to Shoreview. Mr. Schneider noted that there are two (2) methods of installing the gravity line from Fawn Lane to the Reshanau Lake Trunk line. One (1) method is by constructing a trench between the houses on the west side of Fawn Lane across the property lines. The second method is to jack the sewer pipe along the property line between the houses. Mr. Schneider explained that the trench method is not the most favorable method. Mr. Volk has already met with the property owners and they prefer the jacking method. Mr. Volk and PAGE 1 33 134 COUNCIL WORK SESSION MAY 2, 1991 Mr. Schneider also prefer to jack the pipe line between the houses. Additional temporary easements will be needed and there is some risk involved. Eliminating the Fawn Lane lift station will save money and help offset the cost of jacking the pipe line between the houses. Mr. Schneider explained that the current plan is for MWCC to construct the trunk line between the new Centennial Elementary school and the Shenandoah lift station. The cost will be approximately $130,000.00. The contractor has agreed to hold his bid on this portion of the improvement until August 1, 1991. During this time, MWCC will consider this portion of the improvement and make a final decision regarding funding it. De- watering on the project was discussed. Mr. Schneider explained that the cost is hard to predict. TKDA did provide soil borings with specifications to prospective bidders to help them prepare proper bids. He also noted that a bond will also be required from the successful bidder insuring that the improvement will be completed even if the contractor is unable to complete it himself. Council Member Kuether moved to approve Resolution No. 34 - 91 Accepting Bids for the Reshanau Lake Trunk Sewer and awarding the bid to Arcon Construction, 903 East Forest, Mora, Minnesota for $674,388.68. Council Member Reinert seconded the motion. VOTING ON THE MOTION: Bisel ® Bohjanen ❑ Neal ® Reinert Abstained: none Council Member Bohjanen was absent. Kuether Council Member Neal noted that there are some sub - contractors who have not been paid by Kenco on the West Central Trunk Improvement. Mr. Schneider explained that the City is still holding some money from Kenco and the City is also holding the Kenco bonds. If there are subcontractors who have not been entirely satisfied, they should submit written communication to the City clearly outlining what is still owed to them. WATER AND SEWER RATE STUDY Mr. Schneider presented a 1991 City of Lino Lakes Comprehensive Water Study and Water and Sewer Rate Study to the Council. He reviewed the study with the Council noting the projected loses in both the water and the sewer operations. The question posed to the Council is "does the Council want to increase rates to recover PAGE 2 1 1 1 1 1 COUNCIL WORK SESSION MAY 2, 1991 expenses and avoid bottom line losses ?" It was noted that Minnesota residents have been hit hard with property tax increases, face large increases in sales tax and other taxes and may be very angry at another increase in the cost of services. Mr. Schneider noted that the City Charter does not allow for any portion of the sewer and water enterprise fund to be assessed throughout the City. The Charter also states that all enterprise funds will be self supporting. There was discussion regarding the restrictions of the City Charter. Mr. Schneider noted that the single most important cost of the sewer utility is the MWCC rate. MWCC is being pressured to remove phosphorous in its treatment process and is under intense pressure from the EPA to clean up the Mississippi River at the Pigs Eye treatment area. Both of these processes will greatly increase the rate charged by MWCC to the cities. Other cities will be faced by the same situation that is facing Lino Lakes. All cities will be forced to raise rates. The Sewer and Water Rate Study indicates that at least a 5% increase in rates is needed.' This is the cost of inflation and the cost should be raised by this amount each year. There was discussion regarding changing the billing process to a monthly billing rather than a quarterly billing. Mr. Schumacher noted other cities who have done this and returned to the quarterly billing because monthly billing was very costly and time consuming. Mr. Schneider told the Council that he will refine this Sewer and Water Rate Study and bring it back to the Council for further discussion. A public hearing for the Sewer and Water Rate Study has been set for May 28, 1991. Mr. Schneider will have graphics prepared for the hearing. The work session adjourned at 4:50 P.M. These minutes were considered, corrected and approved at a regular Council meeting held on May 28, 1991. �G: Anderson, reasurer f1A(z.g(_��/ Harold L. Bisel, Mayor PAGE 3 135