PRESENT: Mayor
ABSENT: none
ALSO PRESENT: Administrator
CALL TO ORDER -
PLEDGE OF ALLEGIANCE
APPROVAL OF AGENDA
MOTION: Motion made by Forseth,
seconded by K. Anderson, to approve
the Agenda of the
Ayes: D.
MOTION DECLARED PASSED.
CONSENT AGENDA:
A.
Approval of Council Meeting minutes of
B.
Payment of Claims –
C.
Resolution #75-2007: Safe and Sober Grant
D. Request for Proposal (RFP) for
Legal/Attorney & Engineering Services
MOTION: Motion made by Forseth,
seconded by McNeil, to approve the Consent Agenda of
Ayes: D.
MOTION DECLARED PASSED.
OPEN FORUM
No one was present for Open Forum.
PRESENTATION:
ITEM E – WATER / SEWER RATE STUDY PRELIMINARY REPORT S.R.#191-2007 Administrator Orduno introduced Naeem Qureshi from PCE, and reported that the addition of over 550 properties into the municipal water and Metropolitan sewer system prompted the City to conduct a Comprehensive Water and Sewer Rate Study to provide a comparison, recommend a baseline rate structure to fund current and future water/sewer system costs, and provide a long-term implementation strategy for future capital investments. The Council approved the Request for Proposal (RFP) in February of 2007 and the firm of PCE was selected and work began in May.
The presentation is a draft and subject to revisions, Administrator Orduno relayed. City and Engineering Staff met with the consultant on December 6th to review the Draft Report and noted many revisions that will need to be made to the Final Report. She reported that the rate structure proposed over the next 10 years represents a significant increase to current water and sewer rates and prepares a base for implementing a water/sewer rate structure for new connections, but mostly northeast and southwest.
The Historic Village has, from
the initial implementation of water/sewer rates, paid less than true costs,
relying on coverage of the difference by the General Fund, instead of an
Enterprise Fund, which should be the case.
The proposed rate structure begins to establish rates and future
development area charges which will fund future expansions. Administrator Orduno explained Staff’s concerns
that the rate structure as proposed is inadequate to meet future needs,
informing that the Final Report must be revised to reflect a more positive cash
flow for short and long-term activities of the City. Staff also recommends the Draft Report require
revisions to make the document better at describing where
Mr. Qureshi, Principal of PCE, came forward to answer questions and accept comments/changes.
He reviewed his PowerPoint presentation reviewing the number of Current Connections/Projected, Equivalent Meter Conversions, Historic/Projected Water Sales, Operation/Maintenance Costs Projected, Capital Improvement Plan, Unit Costs of Service & Test Year 2007, Cash Flow Water System Operation with Current & Calculated (suggested) Rates, WAC/Area Charge/Connection Charge & C.I.P. and Cash Flow & Operations, Proposed Rates of 2008 - $2.50/1000 gal. to 2012 - $2.92/1000 gal. and Fixed Charges from 2008 - $30 to 2012 - $34 & Typical Household Charges, Wastewater Utility Expenses Projected, Projected Cash Flow Operating Income – Wastewater Utility, SAC & CIP Plan – Wastewater Utility and the Proposed Cash Flow, Typical Household Charges for Wastewater per Development Area – some proposed to increase over 80%, Proposed Water & Sewer Rate Charges, and Water & Sewer Rate Comparisons.
There was discussion about why
the Public Works Facility was figured in with a Water/Sewer Rate Study and
Staff explained how they are usually charged to General, Water, and Sewer Funds
(10 % for sewer and 10% for water were figured). Mr. Qureshi noted that the current Historic
Village rates were the lowest water rates he has seen in his doing rate
studies. Orduno relayed that today to
balance it would take a Calculated rate of $4.27 (instead of .33 cents in the
Administrator Orduno explained the backing out of the Public Works Facility and some Capital Expenditures, so the City would not be “in the red” all 10 years. It was relayed that the Staff salaries and Capital Improvements were not figured in at the initial period, at that time about in the middle, but with them having many more users and not increasing each year is the reasons why the charges are now increasing substantially. The Council mentioned their concerns, and they discussed reviewing the CIP and possibly waiting on some items until more connections. It was suggested the proposal allow enough for water treatment in the future. It was mentioned that 2010 there would be a positive cash flow. Mr. Qureshi noted the advantage of the Excel spreadsheet for future planning, and Council member Forseth informed that was one of the reasons why they had chosen this agency to do the Study.
There was discussion of rate decreases and profit abilities and possibilities. The Council wondered if Staff was content with the methodology, and Administrator Orduno informed there would be some changes which could affect the rates. Council member Hoke suggested not operating in the red, but extending the big increases over a few years time, by running on actual cost more than a savings plan, initially. The Final Report would be brought back to the Council in January, Orduno reported.
COUNCIL BUSINESS
ITEM F – 2008
BUDGET & CERTIFICATION OF LEVY S.R.#192
-2007
RESOLUTION #76-2007: CERTIFYING THE 2008 LEVY
RESOLUTION
#77-2007: OPERATING BUDGET
Administrator Orduno reviewed
that the 2008 levy was set by the Council on September 11th with an
8% increase from 2007, for a total of $2,665,429 -- $1,938,624 for the General
Fund. The only change in the 2008
proposed Budget for General Fund Operations totaling $2,499,628 and
corresponding levy, was the addition of $11,225 in appropriations for part-time
police officers. She reported that the process for adopting the
annual municipal budget and levy is set by the State. The Truth and Taxation Public
Hearing was held on December 3rd, with no one coming forward to
speak. The final City levy must be certified to
MOTION: Motion made by Forseth, seconded by McNeil, to waive the reading and adopt Resolution #76-2007, as presented, adopting the levy for Year 2008 at a total of $2,665,429.00.
Ayes: D.
MOTION DECLARED PASSED.
MOTION: Motion made by McNeil, seconded by K. Anderson, to adopt Resolution #77-2007, as presented, adopting the 2008 General Fund Operating Budget at a total of $2,499,628.00.
Ayes: D.
MOTION DECLARED PASSED.
ITEM G – INFORMATIONAL
MEETING – WEST FRENCH
Engineer Hanson reviewed that the
Council, at their November 27th meeting, scheduled the Public Hearing for the
West French Lake Utility Improvements for
There was CONSENSUS to schedule an
informational meeting for Thursday, January 3rd at
ITEM H – REVIEW
QUESTIONNAIRE RESULTS
IMPROVEMENTS S.R.#194-2007
At the November 13th Council
Meeting, Staff presented the draft Feasibility Report and there was authorization
to hold an informational meeting with the property owners to determine if the properties
support the project. Engineer Hanson reported
that Staff held the meeting on November 26th with the property owners included
in the
Engineer Hanson explained that this
project would require the City to obtain permanent and temporary easements from
Ron and Julia Stenslie, who have agreed to work with the City to grant
easement. The next step is for the
Council to direct Staff how to move forward, if desired, with the 113th
Improvement project, and schedule a public hearing. It was noted that project costs, including
the Feasibility Report, would be assessed and financed through bonding.
The Council agreed there was not enough support to construct the project, at this time, but maybe in a couple years. There was discussion how not doing the project could cause problems for some expansions and septic issues. Staff relayed that a few were very supportive and needed it for expansion, as well as the lack of it would not allow for development of one lot. There was a question about doing it now because of the low cost, but how things could change once the property to the east develops. There was CONSENSUS to not move forward on the 113th Utility/Street Improvements project.
ITEM I – “THE
FIELDS AT
Engineer Hanson reported that
Robert Engstrom has applied to restore 14.25 acres of wetland and establish
10.87 acres of upland buffer for the property on the east side of Diamond Lake
known as The Field at Diamond Lake. The
restoration involves restoring existing jurisdictional wetland areas and expanding
the fringe areas of wetlands to about where they existed prior to ditching and
tile work that drained them. This will
qualify for 10.03 acres of New Wetland Credit and 10.03 acres of Public Value
Credit, deposited in the State Wetland Bank.
On May 15th the Wetland
Conservation Act Technical Evaluation Panel (WCA TEP) met to review the wetland
delineation and Part A of the application.
The wetland boundary approval was mailed on May 21st and on
August 14th Mr. Engstrom submitted the complete Wetland Bank
Application. They met on September 17th
to review Part B. Engineer Hanson
relayed that Staff is recommending the Council consider approval of the Wetland
Bank Application submitted. The
application has been reviewed by the WCA TEP and Board of Water & Soil
Resources staff and they have recommended approval. Staff mentioned that the initial 60 days have
expired, but an extension was requested and approved with a new deadline of
Mr. Engstrom came forward, and
the Council asked about the land being available at a later time there, as
discussion of the City’s interest to purchase some for a redesigned DNR Landing
in that area. It was relayed this would
not include the area of interest to the Council. There was discussion of any reasons to not
approve this, and it was relayed that the positives for the City included improved
area to the roads, add to the existing wetlands instead of just adding small
sections, and the enhancement of water quality for
MOTION: Motion made by Forseth, seconded by McNeil, to approve the Wetland Bank Application submitted by Robert Engstrom, for the property on the east side of Diamond Lake known as the Fields at Diamond Lake.
Ayes: D.
MOTION DECLARED PASSED.
ITEM J – CONTRACT
AWARD FOR PUMPHOUSE NO. 2, N.E.
Engineer Hanson reported that bids
were received on December 4th for Well No. 2 Pumping Facility, with
the low bid from Municipal Builders, Inc. in the amount of $556,302. The engineer’s estimate for the project was
$550,000 and a cost of $560,000 was used to set the 2007 construction bond sale
for this improvement, included in the NE Dayton Areas 1-6 Project. The next step is for the Council to consider
awarding the contract to them. Hanson
responded that Bonestroo has not worked
with this company often, but has been good response on reference checks, and
should be very capable.
MOTION: Motion made by Hoke, seconded by Forseth, to approve the contract award for Well No. 2 Pumping Facility to Municipal Builders, Inc., as presented, in the amount of $556,302 for the total base bid, without the deduct for the alternate chlorine equipment, at this time.
Ayes: D.
MOTION DECLARED PASSED.
ITEM K – CHANGE
ORDER NO. 2, N.E.
Engineer Hanson reviewed that the
Council directed Staff at their September 11th meeting to review
with the two land owners at 12700 and
Staff has finalized the change
order for this work with the contractor and it is included in Change Order No.
2, at $34,994.82. Also included in this Change Order is the construction of a
36” wide concrete valley gutter in
MOTION: Motion made by Forseth, seconded by McNeil, to approve Change Order No. 2, NE Dayton Area 5, Contract 3, for Kuechle Underground, Inc., in the amount of $41,345.46.
Ayes: D.
MOTION DECLARED PASSED.
ITEM L – CHANGE
ORDER NO. 2, N.E.
Next, Engineer Hanson reported
that Staff has finalized Change Order No. 2 for Contract 2 with S.R. Weidema,
Inc., including three parts: Part 1- $292,567
for costs to excavate the muck in
Engineer Hanson handed out a Bond
Sales Summary for NE Dayton Areas 1-6,
MOTION: Motion made by McNeil, seconded by Forseth, to approve Change Order No. 2, NE Dayton Area 3, 4, & 6, Contract 2, for S.R. Weidema, Inc., in the amount of $304,081.76.
Ayes: D.
MOTION DECLARED PASSED.
ITEM M – PUBLIC PURPOSE EXPENDITURE POLICY S.R.#199-2007
Administrator Orduno reported
that the Council outlined in its 2007 Goals the need for the City to express
the contributions of the City’s volunteers, business partners, and City Staff
for their involvement and dedication. Clerk
Borders relayed that the Public Purpose Expenditure Policy would allow for the
costs and policies associated with goal.
The 2008 General Fund Budget does allocate money for the recognition
program, it was relayed. Minnesota Statute
15.46 allows for these expenditures.
Council member Forseth confirmed that the businesses and
volunteers were being covered, as that was his original request. Administrator Orduno relayed that the
volunteers have a lunch each year in appreciation. She suggested Staff be separate from the business recognition which Forseth had mentioned.
MOTION: Motion made by Forseth, seconded by McNeil, to adopt the Public Purpose Expenditure Policy, as presented.
Ayes: D.
MOTION DECLARED PASSED.
ITEM N – DISCUSSION REGARDING ELECTRONIC MESSAGE SIGN S.R.#200-2007
Administrator Orduno reported
that one of the 2007
The Council did not approve this item in the 2008 Budget, but funds are available from the administrative revenues of the 2006A bond proceeds, Administrator Orduno relayed. She informed that the Planning Commission is reviewing a new sign ordinance that would allow an electronic message sign at City Hall and other recreational zoned properties in the City.
The Council suggested saving the
money with all the projects currently going on and the increase in water and
sewer rates. Because of the importance
of communications for the City, the Council suggested checking into other
funding options. Council member Forseth
recommended checking with the Dayton Lions, and Staff mentioned possibly over a
few years time.
REPORT OF OFFICERS
MAYOR UPDATES
Mayor Anderson suggested a bigger
stop sign and flashing lights at Pineview Lane and South Diamond Lake Road,
since people are still driving through without stopping.
COUNCIL UPDATES
Council member McNeil suggested a
motion canceling the regular Council Meeting on Christmas Day.
MOTION: Motion made by McNeil, seconded by Forseth, to cancel the second Council Meeting in December.
Ayes: D.
MOTION DECLARED PASSED.
PUBLIC WORKS SUPERINTENDENT
Public Works Superintendent Hass reported that the score
board that CDAA is funding at the
He also informed that the hockey rink should be ready for use the following week.
POLICE CHIEF
Chief Pietrzak reported that December
18th the Dayton Lions were sponsoring Santa coming to the
CITY ATTORNEY
Attorney Hoff noted the reasoning
for the Closed Session he was requesting after the adjournment. The discussion of a few N.E. and S.W. Dayton
Project litigation matters and settlement negotiations regarding the taking of
the Granstrom property, Hoff informed, including the following cases: Fitzer, Nikolova, Wicht, Dayton Holdings,
VF13, and a right of entry for the Granstroms, possibly requiring
condemnation.
ADJOURNMENT
MOTION: Motion made by Forseth, seconded by K. Anderson, to adjourn the regular meeting.
Ayes: D.
MOTION DECLARED PASSED.
MOTION: Motion made by Forseth, seconded by Hoke, to go into a Closed Session, pursuant to the Attorney/Client privilege, to discuss those matters mentioned in the City Attorney’s report.
Ayes: D.
MOTION DECLARED PASSED.
APPROVED:_____January 8, 2008_______ ATTEST:____________________________