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HomeMy WebLinkAbout2025-10-07 Work Session Meeting MinutesPage 1 MINUTES OF THE EDINA CITY COUNCIL WORK SESSION COMMUNITY ROOM, CITY HALL TUESDAY, OCTOBER 7, 2025 5:30 P.M. 1.0 CALL TO ORDER Mayor Hovland called the meeting to order at 5:31 p.m. 2.0 ROLL CALL Answering rollcall were Members Agnew, Jackson, Pierce, Risser and Hovland. Staff in attendance: Scott Neal, City Manager; Ari Lenz, Assistant City Manager; Chad Millner, Engineering Director; Pa Thao, Finance Director; Nelly Chick-Brewer, Assistant Finance Director; Jennifer Bennerotte, Communications Director; Jesse Meyer-Ruud, I.T. Support Supervisor; and Sharon Allison, City Clerk. 3.1 UTILITY RATE STUDY UPDATE Manager Neal introduced the topic, explaining that the discussion would focus on utilities including the underlying rate structure to fund projects, upcoming utility capital projects and cost estimates, and getting feedback from Council. Engineering Director Millner reviewed several major projects - the York Trunk Sanitary Sewer Improvements are nearing completion of Phase 3, with remaining phases included in the CIP and currently funded through Sewer Availability Charge (SAC). The South Trunk (Cahill) Sanitary Sewer Improvements project was discussed in relation to future development potential, though development is not expected for about 10 years. The Lincoln–Londonderry Sanitary Sewer project, estimated at $20–$40 million, is not part of the current rate study and will be considered in future comprehensive plan discussions. Updates were also provided on Water Treatment Plant No. 5, including revised cost estimates, and on the Flood Risk Reduction Strategy, with Morningside cited as the first completed project. City consultant, Ehlers senior municipal advisor Nick Anhut, presented on the structure and purpose of utility enterprise funds, explaining how fees are assessed and how each utility is analyzed. He reviewed prior rate studies, tier structures, and the rationale for using winter water usage to determine charges. Council raised questions about consumption patterns, recession impacts, fairness across customer types, and potential for adding a fourth usage tier. Discussion also covered the rate study’s financial goals, reserve targets, and assumptions for future expenses and debt coverage. Anhut presented proposed rate adjustments, including an increase to water and sewer connection fees to fund upcoming projects. Council requested additional data comparing commercial and residential usage trends and rates over the past decade. Council also discussed potential policy direction regarding conservation, development-related costs, and equity in rate distribution. Staff noted that a follow-up or special meeting may be scheduled to continue the discussion and review the remainder of the presentation. 4.0 ADJOURNMENT Minutes/Edina City Council Work Session/October 7, 2025 Page 2 Mayor Hovland adjourned the meeting at 6:55 p.m. Respectfully submitted, Sharon Allison, City Clerk Minutes approved by Edina City Council, October 22, 2025. James B. Hovland, Mayor Audio copy of the work session available. Sharon Allison (Oct 23, 2025 12:29:34 CDT)