Loading...
HomeMy WebLinkAbout11-04-2013 Work Session MinutesPARTIAL MINUTES ONLY Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: NOVEMBER 4, 2013 Time of Meeting: 7:00 P.M. Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION Present: Mayor Peterson, Council Member Williams, Council Member Nawrocki, Council Member Diehm, Council Member Schmitt, City Manager Walt Fehst, Assistant to City Manager/HR Director Linda Magee, Public Works Director/City Engineer Kevin Hansen, Finance Director Joseph Kloiber, Community Development Director Scott Clark, and City Clerk Tori Leonhardt. City Engineer/Public Works Director Kevin Hansen gave the background information to the Council on the fact that the City entered into a long-term contract with the City of Minneapolis Water Works (MWW) for the supply and purchase of water in 2004. In January of this year, Contract Amendment No. 1 was approved so that Minneapolis both owns and maintains the master meter. This amendment was approved for meter ownership for each of their municipal or wholesale customers. Over the last 15 months, Minneapolis has been updating the Water Cost of Service (COS) Study, involving each of their municipal customers. The current water contract provides that the COS will be updated every five years. From the 2012 COS update, Minneapolis is proposing Contract Amendment No. 2. Changes proposed in Contract Amendment No. 2 are identified as follows: Rate Calculation: The current contract Details that Columbia Heights will pay an “inside rate” or percentage of what Minneapolis customer pay. The percentage is determined by the COS, and may change with future COS updates. Our current inside rate is 57.78% of Minneapolis customer rates. They are looking at drilling wells for the purposes of back up because they only have a two day back up and for temperature control. It causes a concern with algae. They want to pull in colder water. This is about three years out. They need to get permitted through the DNR. They would need to start a pilot program. The COS looks at all the facets of water being the cost to draw the water, to pump it, to treat it, to distribute it, it looks at capital costs. Nawrocki asked where they would be drilling these wells. Hansen indicated that they have not identified a well field yet, but it will be on the other side of the river on Minneapolis’s side. Hansen stated we have paid an inside rate for the last two decades. Nawrocki felt this is like a double hit. Hansen did not feel this was correct. We have been raising our utility rates per volume and what has changed are the fixed fee costs. It is just a different rate to base our rate off of. Schmitt stated at the quarterly meeting they talked about the aquifers going down instead of up and they are talking about drilling 30 wells. The DNR and Met Council are also doing studies to figure out what to do. We need to start educating the public on preserving our water supply. Our only water supply comes from the Mississippi and the City of Minneapolis, is it feasible for us to drill a well? Hansen stated it is always feasible for us to drill a well, but as a backup plan now depends on ground water and interconnects with the cities of Fridley and New Brighton and that is already in place. We do not need to drill a well. 2014 Budget Presentation Community Development Dept: City Managers Budget: Assessing: Legal Servies: City Clerk: Mayor/Council: Public Works: Finance/Liquor/General Government: