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HomeMy WebLinkAboutMarch 12, 2019Joint meeting with the Shakopee Public Utilities Shakopee City Council March 12, 2019 7:00 PM City Hall 485 Gorman St. Shakopee Mission Statement The Mission of the City of Shakopee is to provide the opportunity to live, work and play in a community with a proud past, promising future, and small town atmosphere within a metropolitan setting. A. Keep Shakopee a safe and healthy community where residents can pursue active and quality lifestyles. B. Positively manage the challenges and opportunities presented by growth, development and change. C. Maintain the City's strong financial health. D. Maintain, improve and create strong partnerships with other public and private sector entities. E. Deliver effective and efficient public services by a staff of well -trained, caring and professional employees. F. Housekeeping item. Mayor Bill Mars presiding 1. Roll Call 2. Pledge of Allegiance 3. Approval of Agenda 4. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL- Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 5. Joint meeting with Shakopee Public Utilities S.A. The status of the current rate formulas for the SPUC Water Connection Charge (WCC) and Water Trunk Charge (WTC), to include any changes to the formulas that the commission forsees S.B. A comparison of the SPUC WCC/WTC rates for our neighboring and comparable cities S.C. SPUC's projected plans for the city's water infrastructure with an identification of funding stream S.D. An outline of the water rates currently charged by SPUC and any past recommendations from consultants regarding appropriate rate structures that were Page 1 of 59 not followed and why 6. Shakopee Public Utilities Presentation 6.A. Presentation Made to the Shakopee Chamber of Commerce Public Policy Committee Dec. 11, 2018 6.B. Services Provided to the City of Shakopee 6.C. SPU Economic Development Efforts 6.D. History and Statutory Authority of SPU 6.E. Respective roles of SPU V. City of Shakopee - discussion 6.F. Defined role of City Council Liaisons - discussions 6.G. Policy on the City's Sanitary Sewer Fund and Storm Sewer Fund 7. Informational Only 7.A. City Council and SPUC Joint Meeting Minutes of May 6, 2014 8. Other Business 9. Adjournment to March 19, 2019 at 7:00 p.m. Page 2 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANA SUBJECT: WATER CONNECTION AND TRUNK WA T R CHARGES DETERMINATION OF RATES AND 1NCR ASES DATE: MARCH 1, 2019 City Council Request #2 — "Provide the status of our current rate formula for both WCC and TWC to include any changes to the formula that you foresee". Included with this memo is the calculation methodology used in both the WCC and the TWC, as provided by Planning and Engineering Director Joe Adams. Also attached is the minutes from the November 5, 2007 Commission meeting approving the additional 2% be added to the annual ENR CCI. It should be noted that the Commission discussed the financing of both charges at nine different meetings during 2007. The second part of the City Council Request #2 is "to include any changes to the formula that you foresee". SPU Staff does not foresee any changes to the current methodology used in calculating WCC and TWC charges. In September 2018, the Commission, with the annual budget process, included the costs of hiring a Consultant in 2019 to conduct an analysis of WCC and TWC costs, based on the completion of the SPU 2018 Comprehensive Water System Plan as completed by SEH. Page 3 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: John Crooks, Utilities Manager FROM: Joseph D. Adams, Planning & Engineering Director SUBJECT: Trunk Water Charge and Water Connection Charge DAlE: March 1, 2019 ISSUE This memo serves to summarize the Utilities Commission's development of their TWC and WCC fees. BACKGROUND The Commission initially adopted their TWC and WCC policies and set fees by Resolutions #222 dated Jan 1,1982 and #261 dated May 2, 1983 respectively. Subsequent resolutions (34 TWC resolutions to date and 36 WCC resolutions to date) were adopted to adjust the rates for inflation using the Engineering News Record's (ENR) Construction Cost Index (CCI). Periodic Comprehensive Water Plan Updates were developed for the Commission by an engineering consultant to update the "snapshot" of future facilities and funding needs and to aid the Commission in developing their annual Five Year Capital Improvement Plan. These Comprehensive Water Plan Updates were driven by the Commission's desire to identify and plan for critical water system infrastructure needs to support the development goals of the City of Shakopee and were each based on the City's latest Comprehensive Plan (or draft), including land use and population projections. Comprehensive Water Plans were followed by a financial analysis of the Commission's Connection Fund and Trunk Water Fund to determine if any other adjustments beyond the annual ENR' s CCI were warranted, so that the fees would be sufficient to fund the needed future facilities. DISCUSSION To derive the TWC and WCC rates, the financial analysis has taken the projected costs of future facilities and divided by the projected units that the costs can be spread against. In the case of the TWC the units are developable acres that have not previously been deemed to have water availability as defined by the Commission. Water availability initially was granted to all existing properties served by the water system when the TWC was first adopted. Developable acres are defined by the Commission's policy to be gross acreage minus road rights of way, dedicated city park area and Page 4 of 59 delineated wetlands that remain on site post development. To account for these features in future development an allowance of 15% is subtracted from the total undeveloped area at the time of the study with certain additional adjustments made for unique circumstances, e.g. SMSC land holdings are subtracted out because it is assumed they will be served by their own water system (this area grows between studies as additional land is purchased by the SMSC), the MN River Wildlife Refuge and other similar clearly undevelopable areas. So, total planned Trunk Water facilities divided by projected net acreage yields the TWC rate per net acre. In the case of the VvDCC the units are (equivalent) SAC units. Sewer Availability Charge units are defined by the Met Council. One SAC unit equals 274 gallons of sewage flow per day. The Met Council deteinines for each building permit the amount of SAC units assigned. The Met Council publishes a handbook that explains their methodology and they do make periodic adjustments in that methodology, but much of it is based on historical flow data. Sewer flow data is assumed to track with domestic water use metered data with adjustments for industrial processes and seasonal lawn sprinlding. The WCC rate is applied to all new connections (customers) and can also be applied to existing customers when increased water usage is indicated by metering when water use is not tracking sewage flow due to process water that is not discharged to the sewer system. To derive the WCC rate the totnl cost of future water supply (wells and pump houses), treatment, storage and pressure regulating facilities (booster stations and pressure reducing valves) is divided by the projected number of (equivalent) SAC units that are assumed to be applied to new developments based on land use and population projections in the City's Comprehensive Plan. So, total planned Water Connection (Capacity) facilities divided by projected (equivalent) SAC units yields the WCC rate per SAC unit. Note - It is sometimes confusing to have the WCC fee labeled as a "connection" (vs. capacity) charge, because it lends the impression it has something to do with the cost of making a physical pipe connection. While it is really related to the demand "capacity" that the water supply system has to be able to support for use by the proposed development The Commission's stated intention has been to stay ahead of growth to always be in a position to support the c ty's development goals and to "capture" development opportunities when they arise by having facilities in place that are capable of serving proposed developments' requirements. Page 5 of 59 MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION (Regular Meeting) President McGowan called the regular session of the Shakopee Publie Utilities Commission to order at the. Shakopee Public Utilities Meeting room at 5:05 P.M., November 5, 2007. MEMBERS PRESENT: Commissioners McGowan, Mars, Miller and Braun. Also present Liaison Joos, Manager Van Hout, Finance Director Schmid, Planning & Engineering Director Adams, Line Superintendent Athmarm, Water Superintendent Crooks and Marketing/Key Account Director Petrick. Commissioner Engler was absent as previously advised. Mgr. Van Hout introduced Finance Director Renee Sclunid to the Commission. President McGowan welcomed her to the Utilities on behalf of the Commission. It was noted that the minutes from the October 15, 2007 Commission meeting would be offered for approval at the next scheduled meeting. Commissioner Mars made reference to an email he had received from a customer requesting that the Utilities offer an online payment option. President McGowan acknowledged the request and noted that other payment options are currently available. Commissioner Miller requested that item 10b: Auditor Selection Committee — Status Update, be removed from Consent Business. Motion by Miller, seconded by Mars to approve the agenda as amended. Motion carried. President McGowan stated that the Consent Item was: 13 Month Nitrate Report (Advisory). Motion by Mars, seconded by Miller to approve the Consent Business as presented. Motion carried. Bills read: CMI Mailing & Marketing Service -postage 6,000.00 Scott Eickholt 145.50 Thomas R. Lacina 195.95 Steve Massie 80.03 Gregory Triplett 187.70 Miguel Alonso 100.00 American Public Power Assoc. 2,500.00 Sherri Anderson 36.28 Kenneth C. Arrell 100.00 Page 6 of 59 Arrow Ace Hardware 333.01 Avant Group LLC 435.11 Batteries Plus 60.77 Tamara & Scott Bawek 165.00 BEC Corporation 5,492.13 Best Express Delivery Inc. 252.00 Timothy & Denise Bien 60.00 Bob's Lawn & Landscaping Inc. 132.86 Border States Electric Supply 286.70 Carlson Building Services Inc. 3,035.25 Centerpoint Energy 324.61 Cintas Corp. 558.82 Citizens State Bank-Sales/USE tax 201,039.00 Citizens State. Bank -Acclaim Benefits 765.48 City of Prior Lake 2,626.50 City of Shakopee 372,528.28 City of Shakopee 132,000.00 City of Shakopee. 1,475.00 Coordinated Business Systems Ltd 102.86 Culver Company 783.25 C3--Ilex, LLC 875.53 De Lage Lariden Financial Services 184.12 Delta Dental Plan of MN 3,496.20 Dick's/Lakeville Sanitation Inc. 145.56 Ditch Witch of Minnesota Inc. 336.93 Kim Dwine 250.00 Scott Bickholt 53.35 Employers Association Inc. 13,780.00 Andrew Enstad 160.00 Fasternal Ind. & Const. Supplies 41.02 Gail Fink 100.00 Louis Flicek 250.00 Assurant Employee Benefits 1,675.27 Bryan Fugere 30.00 John & Ruth Geis 250.00 Genuine Parts Co. 25.56 Gopher State One -Call 857.89 Brad Gustafson 524.05 Cheryl Hartman 100.00 Hauer Farms Inc. 47.25 Hawkins Inc. 3,491.46 Heartland Tire 507.78 Tracy Hein .100.00 Page 7 of 59 Hennen's Shell 56.50 Joe Hillstrom 31.04 Hooper Corporation 155,419.96 Agnes E. Horeish 250.00 Jerry's Lawn Service 4,019.31 Joanne M. Johnson 30.00 JT Services 2,761.55 David & Jean Kaiser 100.00 Randy Kelso 160.00 Jeff & Beth Kelzer 250.00 Kennedy & Graven, Chartered 143.00 Anthony Kerber 260.00 Gary & Lauren Kern 100.00 Trina Kramer 280.00 Thomas R. Lacina 64.99 League of MN Cities Ins. Trust 276.47 Perry Letizio 100.00 Link Lumber 171.46 Scott Lucius 30.00 M E Simpson Co., Inc. 12,500.00 Steve Massie 65.48 Metrotech Corporation 210.00 Jason Miller 100.00 Minn. Valley Testing Labs, Inc. 192.00 Minn. Pipe & Equipment 1,173.44 MMUA 1,200.00 MN Child Support Payment Ctr 1,923.25 Motor Parts Service Co., Inc. 16.38 NCPERS Group Life Ins. 140.00 Eric Newman 127.50 Nexus Information Systems 3,866.85 Northern States Power Co. 1,440.94 Northern Tool & Equipment 49.45 Northern Water Works Supply 561.61 Barry O'Brien 135.00 Tamara Petrich 623.98 Jerry Poole 30.00 Pro Staff 3,475.68 Quality Forklift Sales & Service 918.12 R W Beck Inc. 26,692.44 RDO Equipament Co. 82.03 Red Pederson Utilities Inc. 3,730.00 RESCO 42,674.32 Page 8 of 59 Doris Ruslnneyer 250.00 S & T Office Products Inc. 1,133.25 Kurt Schoenecker 350.00 Scott County CDA 750.00 Shakopee Chamber of Commerce 784.65 Norman & Janice Shutrop 100.00 Matt Stanley 160.00 T & R Service - 1,607.00 John Paul Terrizzi 160.00 Brent/June Theilen 60.00 Lisa & Cory Trend 280.00 Wisc. Child Support Paymt Ctr 561.00 Gregory Triplett 73.72 Edwin Underwood 100.00 United Services Group 546.34 USA Blue Book 77.44 Valley -Rich Co., Inc. 5,875.83 Lou Van Hout 36.95 Verizon Wireless 41.13 Debra K. Wangerin 200.00 Wells Fargo Bank MN NA 655.87 WESCO 10,223.98 Thomas A. York 290.00 Emily Young 100.00 Ziegler Inc. 3,915.48 Motion by Mars, seconded by Braun to approve the warrant listing dated November 5, 2007 as presented. Motion carried. Liaison Joos presented his report. Item 8a: 13 Month Nitrate Report (Advisor), was received under Consent Business. Mr. Crooks reported on current water operations. He also noted the results of an annual inspection of the pump houses conducted by the Minnesota Dept. of Health. Mr. Adams provided an overview of the Beckrich Park/Kristal Estates Feasibility Report on the proposed extension of sanitary sewer and water utilities to those two plats. Lynette Stocker of the Beckrich Park Estates homeowners association spoke on behalf of the residents regarding the fees associated with this proposed project. Mr. Joos again noted he was a homeowner in the area of this project. Motion by Mars, seconded by Braun to approve the water system portion of the feasibility report for the extension of water utilities to Beckrich Park Estates by City Project Page 9 of 59 Number 2007-10 dated October 31, 2007, also including text changes and comments suggested by Staff. Motion carried. The Trunk Water Charge and Water Connection Charge fees rates to be applied to the Beckrich Park Estates portion of this project were discussed. Motion by Miller, seconded by Mars to apply the 2007 Trunk Water Charge and Water Connection Charge rates to the n eelri%b Park Estates portion of the water system extension. During discussion of the motion Commission Mars noted this was due to the unique circumstances of this project, and that we will get the connections fees at the start rather than over time. President McGowan called for the vote. Motion carried. The financial analysis of the Water Connection Charge and Tnnnk Water Charge Fund CT was discussed. Direction was requested by Staff to clarify the amount of the inflationary increase to be applied to the Water Connection Charge. Commission consensus was to go with 2% above the annual inflationary figure. Mr. Adams noted the letter of notice that was mailed to probable interested parties regarding the impending increases to the Water Connection Charge and the Tnmk Water Charge. Mr. Adams presented a request by I -Storage, located at the southeast corner of Stagecoach Rd and 13th Avenue, to receive municipal water service for domestic use and fire protection. Motion by Mars, seconded by Braun to approve the proposed I -Storage water main extension, subject to all standard conditions, with the specific exception of the looping requirement at this time due to planned water system in the 13th Avenue, Maras Street, Hanson Avenue and Stagecoach Road area. Motion carried. Motion by Braun, seconded by Miller to offer Resolution #899. A Resolution Setting The Amount Of The Trunk Water Charge, Approving Of Its Collection And Authorizing Water Service To Certain Property Described As: I -Storage. Yes: Commissioners Miller, Braun, Mars and McGowan. Nay: none. Motion carried. Resolution passed. Mr. Athmannn reported on current electric operations. Mgr. Van Hout noted the Financial Report for September 2007. Commissioner Miller provided a status update on the process in progress to select an auditor for the year 2007, and noted the plan for Commission actionron November 19. Mr. Adams provided an overview of the Semi -Final 5 Year CIP. Mgr. Van Hout provided an organizational assessment update. Mgr. Van Hout provided the Commission materials to review to assist in determining the 2008 wage ranges. Page 10 of 59 President McGowan designated himself and Commissioner Mars as a compensation sub- committee. Motion by Mars, seconded by Miller to adjourn to the November 19, 2007 meeting. Motion carried. r kJ Commi6'on Secretary: Louis Van Hout Page 11 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANAGER SUBJECT: WATER CONNECTION AND TRUNK WAT5'R CHARGES COMPARATIVE ANALYSIS DATE: FEBRUARY 28, 2019 City Council Request #3 — "Provide a comparison of the SPU WCC/TWC rates for our neighboring cities (please include those funds that operate as your WCC/TWC which may be named differently as well)". This request was actually part of the Public Policy Committee presentation and was provided to the Commission at the January 7, 2019 meeting. Staff was also provided a comparative analysis as done by the Public Policy Committee that was discussed in detail at the December 11, 2018 meeting. As their study was still being prepared, staff does not believe we are at liberty to share their data. At this time SPU has not requested the final study from the Committee. Also attached is a comparison done by the City Economic Director of Planning and Development. This information was provided by the City Administrator. Page 12 of 59 2 2 Water Lateral Charge c m 0 N N N ta') U CO 0 N Chanhassen QI ca Water Aceage Charge Water Area Fee U U U CO 0 N 2012.19/acre Tank, Source Supply 0 0 2018 City Code BellePlaine C C C m m rn 4 al o lLaD rn M m 2018 City Code c U U 0 O N Do tri 0 co co system access charge 2019 REC/SAC Eden Prairie w 01 0 v) Page 13 of 59 restaurenteurs by SPUC. At this time we do have an out in our lease but would love to proceed with this project and bring a fantastic family dining experience to your great City. As you may know, major retail development does not get hit with SAC/WAC charges to the degree restaurants do. Normal retail charges for a major development are next to nothing compared to the overall cost for large developers. Restaurants get hit with SAC/WAC charges which amount to about 1/3rd of our overall buildout costs. National chains can afford to pay these costs however it is more difficult for small business owners. If the city wants another Wendys or Ruby Tuesdays throughout their City, those national chains may pay these exorbitant fees, but they are just too much for us and nearly all quality local restauranteurs. A basic live music venue or hip hop bar could maybe afford these SAC charges because their space is much smaller. However, a sit down dining establishment needs square footage for families to gather, kitchen equipment, bar/diming space and banquet rooms in order to operate. The new guidelines from the Metropolitan Council negatively affect sit down dining establishments because they are based simply on square footage. if a new major economic development project, for example a large distribution center, does get approved with these cash credits, the city will be in an even greater demand for new dining establishments. 1 graduated from the City of Shakopee and am proud of its development and how the City has grown. If the City wants to draw in another fast food establishment or stale national chain that's fine, if not Willy McCoys, et'al would love to become a great addition to the community if a portion of the $244,00 SAC/WAC charges could be mitigated. Please feel free to call me with questions or comments. Korey Bannerman Willy McCoys 612-685-2292 From: Michael Kerski <MKerski@shakopeemn.gov> Sent: Wednesday, November 7, 2018 8:51 AM To: korev.bann@gmail.com Cc: Kelly Buska <kbuska@shakopeemn.gov>; Bill Reynolds <BRevnoldsPShakopeeMN.gov>; Darin Nelson <DNelsont Shakopeemn.gov> Subject: SAC Good morning The city is not in possession of credits but actual cash received as part of the Rahr agreement. It would be up to the City Council if you would be eligible for the credits, Currently there are the cash equivalent of about 43 credits in the bank but the Council has been holding those for a major economic development project that would create high paying jobs. There are a couple of those projects in the current pipeline. You questioned the city's SAC and WAC fees compared to other cities. Staff has done some research and found that we are similar to other communities: Shakopee Savage Prior Lake Met Council $2485.00 $2485.00 $2485.00 City SAC $500.00 $2237.54 $799.00 WAC $5730,00 $2984.49 $2788.00 Page 14 of 59 Total $8715.00 $7707.03 $6072.00 Michael SHAKOPEE Michael Kerski Director of Planning & Development City of Shakopee 485 Gorman Street Shakopee, MN 55379 Direct 952-233-9346 Cell 864-360-5473 www.ShakopeeMN.gov 3 Page 15 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANAGE SUBJECT: SPU CAPITAL IMPROVEMENT PLAN 201'9-2023 DATE: FEBRUARY 28, 2019 City Council Request #4 — "Provide the SPU projected plans for the water infrastructure with an identification of the funding streams". As part of the annual budget process the 5 year SPU Capital Improvement Plan for Water is presented to the Commission, in a draft form, for Commission input and comment in the month of November. Once their input has been provided the Final 5 year CIP is presented for approval/acceptance, which typically is at a December meeting. Attached is the SPU Commission approved projects for 2019 and the Commission accepted Plan for the years 2020-2023, as there may be slight changes in those projects going forward. Page 16 of 59 00 0 N 0a Water Summary Justification Item Description to O 0 0 0 0 0 0 N N 0... o a. M N N 7 0O• O 10 ' 10 MMO 0N N cp N N r r C. D O o O 0 0 0 CO• C0 0 00) N 0 O 10 N N r 10 CD CD w 0 0 c+) O0 N N N r r CD Lc) <7'O OM N O 0 0 tp � Yr NM N N h to to 0 O 0 ' 0 O 0 N N 0 a 0 0 a c�COcI)(!) CO N CO 'ar 0 t0 - CO P r r r r o co O co co ' to Le t05 0 to) co o 0. co 0 10 CC00 D 0 M ' ' 0 10 co00 N' t5 to t!) 10N co O N co 0000 co 000 N O 10. 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N as d d c d W O. > 44 z° a, tt co 4403 N0 CI Justification Item Description o o o o ' 0 0) CD CO O O o O O 0 O C0 (0 O0 (N 0) 40 (0 N N' O O 0 O O 0 O O 0 O 0 C] N r r 40 It) O CC!. t, CO (0 M 1') 00000 0 0 0 CO 0 0 0 0 O O O (D0(O CA O N N N d CD 0 0 0 0 ! b' 0 0 • i O y)'. O$. O' O 0 t0 N st-1 0 0 C 0 C C 0 0 0 EE E EEEEEE 0 0 0 0 0 0 0 0 0 00 0 00000CI W z N 0 W 9 v 0 c 0 CO O O y V O p m CO w = NN p O Cn W c Z o c N N 0 0 0 0 0 o o ti 2,) c c 0 0 w N 174 IL 4% O Co 0o •= .5. G Q la 0 0 0 CO 0 0 CO CA 0 0 0 -• ra COCOn CO w 004 N N r) 0 a rs r r <-FFage ro 5§ ` = = " R-= SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANAG SUBJECT: SPU WATER RATES AND COMPARITIVENALYSIS ELECTRIC RATES AND COMPARITIVE ANALYSIS DATE: FEBRUARY 28, 2019 City Council Request #5 — "Provide an outline of the water rates currently charged and any past recommendations from consultants regarding appropriate rate structures that were not followed and why". The first item is the SPU 2019 Water Rate Brochure, which describes in detail rates structures and rate classes. The Cost of Service/Rate Study was performed by Progressive Consulting Engineers in July of 2009. Within the study, the Consultant's recommendation was to increase water rates by 10% per year over a 5 year period ending in 2015. Attached to this memo are the minutes of the meeting in which the Study was presented. The Commission felt the annual increase over a period of 5 years was excessive and approved a 10% increase in year one, and to annually review the position of the Water Fund Balance and to consider additional rate increases as to secure appropriate reserves as recommended by our financial auditors. Also attached is a comparative analysis of our water rates with surrounding communities. This same analysis was performed for the SPU/Council meeting in 2014 and 2012, as to keep a similar stream of comparison. Electric rates are also attached along with a comparative anlysis. Page 22 of 59 WATER CONSERVATION TIPS MULTIPLE -FAMILY RESIDENTIAL DWELLINGS ro N n ro >, U E C c O U U i 4-, a) a) ro c c vi C c— a) ;4:- cti C o of water conservation and O rc5 W c 4➢ C �' a) .+-' v- .0.0 i' 41 Q) a) 0 ° > 0 -0.+ f6 03 V) - C inL. vim) > -a C c) O a a) fCS ro > C C 1- O Q e> 9° r O �/} ID ° , C O C U6 O O j O N 13 ° -0 U p v1 C Ci, Ill0 -C v5 a) �} +) - v-- -p N n C1 0 .+.3 ro 13 .°u 3 "v= Q) v) != S a-, ,.0 C C Oi --- C sr a CO (6 Q) two _ o o �+=- p co v a) .00 O- > cn N 0 N Q - N �CO ' New `U° Qro • N N 10 w WI o •> > _c-0 (0 c n IV ° r L rr o O i ° vi N u>i ° .0 E t in 0 1 3 0 = 0 o .c Q rts (0 m 0 O -0 ' E r6 v, C Q 0 13 c N 0) 0 ' a3 0 a 03 @ c .S 4_, c :• Z3 a) .i- '- a) = Q) ° t' (ll C1 c -Cc rroo S 0 -° UO cc' ro 0_ a) O -0 -,- To' v�N 0 _ E�UNaq0c 2 O.> ai ;II- 1)) ° C .§ U `2,,„ ra v) v) C (o cn y r0 ..0 N .� 5 C a) ° Q. °) �;.7,�:p o >, o j o 4- � u) i 2 E 0).V_ ° 2 E O, _c c c 0 a) .� C 3 7 c a) U c v a) -v) v- 0 ro L2 2 -O = Q O- >, Z3 Q 0 _, a) :g S U E a) U ra i 10-0 X o ` I— O u) :o o rc ai p The owner or the customer of record in such a) 44 C a) 0 0. O (a c E 4) 0 0 0)ro m 2 O determination made. m .0 � as 10 tx 4 i v="-- N+� Q — .0 O © J �QU7 'O p D aS v 0 -o UJ a) _0 a, v C F- cn P = L ' .0 S1 p -Co O a) r N (n < a) NU tea) rII E a) U IA w E '> X 0 L. Q () Z a) 4= Q 0 ° fY au r`p A--, rp a)•N .0 v) !11 F- '� - C — 0) fo U v, d E° 0 N U) C C UJ J^' O 10 O C CC ro u) 0 o CO 0° a s a) L U CO �N , rn m D h W (0 — Q 0 c -C W I 2 N 0 0_ ° �) U O Page 23 of 59 QUESTIONS? Water Department 4' its CaII 952.445.1988 or sit spucweb.com x U z bctive January 2019 0 0 r) M up co yr +s w cn to to N CN r: r` ER v. o 0 M M to to to t0 of ai 69 vt w w 0 O to to n nr n if? ri 69 0 W to -J H Z W 0 to w cc RRIGAT Page 24 of 59 E 0 rn CONSERVATION RATE STRUCTURE: a) N a)ate-+ (1) -C c U >? tc-U c (n-O 2C 90 N c sa a) iJ (O To o) c O L O a) o o 0 p O O 0o m-a ai c 0•-L� E 0 c\I c) a Q o o 0 D" O v U o cti > m Cr a) c m c Cs o o rn a c— 12 a) tocv vo �;,c 3 a) Q) o 0 Z fll c O 0 o c Ct C 0 C 0) 0 > d o c Q I" O O 'n ,n a) 'iCO _ rt3u) U z0 -0 E O N o) -ro,04-NO • a) U pc > Nn Oc m a OU O w W iO tn E.).75 _c >> c c Pcc-a � • oU �W ro - ro ° E( cT a)iih°p�floQ OQ Q CI a 2 ro 7cp . o �D coo ._N FO ro D rn O n X - O a) C Z Lr vi c a) a) Li .o < O N n U 0_0 CD a ..c -c c 17.E 0) a) a) "H + O > n ro o) (2 § o v sc_c ro cE c U a Fes- ac) .0 E iY •> cl)Q7� Q W n O N L r0 r0 C O U rn Ui 2lOU N N c O fo iY J U X v N 5= D _I v Cf.> o) y rp nos Qt) cc.4rD rCS ::: .Q o i- 5 .c a) _ :N ro E 2 u7 E Q) Z,O O) E a O a) a 2-."OEc '�-o wa Z Dv)U I COcL1 o u) Service lines are owned and maintained m 0 t tl please contact the SPU Water Department at 952.445.1988. 2019 WATER RATES (x 1,000 GALLONS) BASE CHARGE RESIDENTIAL COMMERCIAL INDUSTRIAL SPUC $3.37/month 0-5,000 $2.49 over 5,000 $2.98 $2.28 $1.98 SAVAGE $8.65/month 0-12,000 $3.48 Same as Residential Same as Residential 12,001-16,000 $3.79 over 16,000 $4.18 PRIOR LAKE $10.00/quarterly 0-25,000 $4.81 Same as Residential Same as Residential Capital Facility Charge over 25,000 $6.63 CHANHASSEN $13.65/quarterly 0-6,000 $1.28 Same as Residential Same as Residential 6,001-24,000 $2.57 24,001-48,000 $3.37 over48,000 $3.93 over 99,001 $4.99 JORDAN $10.29/month 0-15,000 $5.63 Same as Residential Same as Residential 15,001-30,000 $7.20 over 30,000 $8.77 CHASKA $3.28/month 0-7,000 $2.43 0-20,000 $2.07 90,000 $1.84 7,001-20,000 $2.58 over 20,000 $2.29 over 90,000 $2.06 20,001-30,000 $2.89 30,001-40,000 $3.36 over 40,000 $4.16 EDEN PRAIRIE $31 .50/q uarterly 0-20,000 $2.20 $2.30 $2.30 2018 1/2 Water 20,001-40,000 $2.95 1/2 Sewer 40,001-60,000 $4.05 over 60,000 $5.40 Page 25 of 59 MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION (Adj ounied Regular Meeting) President Mars called the adjourned regular session of the Shakopee Public Utilities Commission to order at the Shakopee Public Utilities meeting room at 5:00 P.M., August 17, 2009. MEMBERS PRESENT; Commissioners Mars, Braun, Engler, McGowan and Coffel. Also present, Liaison Joos, Manager Van Hout, Finance Director Schmid, Line Superintendent Athmann and Water Superintendent Crooks. Motion by Braun, seconded by McGowan to approve the minutes of the August 3, 2009 meeting. Motion carried. President Mars noted he had received a letter from a rate payer regarding interest in geo- thermal systems. President Mars offered the agenda for approval. Motion by McGowan, seconded by Coffel to approve the agenda as presented. Motion carried. President Mars noted that item 8a: Water System Operating Report was not intended to be on the Consent Business agenda, and that the only Consent Item was: item 10b: Financial Results for July 2009. Motion by Engler, seconded by Braun to approve the Consent Business agenda as amended. Motion carried, The warrant listing for bills paid August 17, 2009 was presented: Shakopee Post Office $310.00 Ronald Aanerud 200.00 Acclaim Benefits -flex spending reimb 390.20 Apple Ford of Shakopee 228.41 ARAMARK Refreshment Services Inc. 291.45 Avant Group LLC 331.03 Batteries Plus 301.13 Bell Lumber & Pole Co. 16,207.60 Matthew Beaan 100,00 Robert Berndtson 253.00 Best Express Delivery Inc. 616.00 Border States Electric Supply 2,463.42 Mark J. Bosch 60.00 Debra Brandes 33.00 Page 26 of 59 Jill & Eric Branwall 35.00 Leon Breeggemann 400.00 CAP Agency 15,115.00 Center Point Energy -Klein Underground 139.80 City of Savage 10,723.40 City of Shakopee 365,774.57 CPS Technology Solutions Inc. 2,864.17 Daffron & Associates Inc. 990.00 Dakota Supply Group 98.39 Peter Bide 60,00 Epic Lawn & Landscape Co. 3,811,16 Fastenal Ind. & Const. Supplies 646.98 Genuine Parts Co. 44.31 Bernard Goehring 75.00 Gopher State One -Call 864.00 Graybar Electric Co, Inc. 5,906.81 Daryl & Susan Hanson 95.00 Hawkins Inc. 11,185.43 Hennen's Shell 73.98 Frances Howard 35.00 Stuart C. Irby Co. 185.43 Loren Johnson 160,00 JT Services 4,788,00 Justright Sealcoating LLC 8,008.00 Peggy Kohl 15.00 Thomas R. Lacina 246.40 Kevin Linehan 165.00 Steve Link 15.00 Lloyd's Const. Services 343.25 Bernette Martin 300.00 Steve Massie 230.45 Donna McFarlane 100.00 Minn. Valley Testing Labs Inc. 132.50 Minnesota Life 987.54 Minnesota Pipe & Equipment 198.16 MN Municipal Power Agency 2,391,381.97 Minnesota UI 584.04 MN Dept of Revenue-Sales/USE tax 172,617.00 Jack Nelson 100.00 Nextel Communications 591.63 Nexus Information Systems 447.81 Northern States Power Co. 10,957.52 Northern Water Works Supply 15,091.62 Page 27 of 59 Beth & Einar Odland 60.00 Curtis L. Olson 60.00 Carlos Pinelo 100.00 Progressive Consulting Engineers Inc. 323.18 Qwest Dex 48.00 Rose Presents 221.00 Katherine Rue 100.00 S&T Office Products Inc. 8,267.48 Renee Schmid 35.37 Ruth Searles- 35.00 Sherwin Williams 123.41 SPS Companies, Inc. 176.00 Denise Synstelien 95.00 T&R Service 75.00 Gregory Triplett 228.80 USA Blue Book 153.67 Utilities Plus Energy Services 3,050.00 Viking Electric Supply Inc. 667.40 Wells Fargo Bank MN, NA 609.19 WESCO 2,480.36 Woodhill Business Products 1,805.59 Ziegler Inc. 1,500.39 Acclaim Benefits LLC 147.75 Bank of New York Mellon 250.00 Best Express Delivery Inc. 616.00 Blue Cross Blue Shield of MN 51,843.00 League of Minnesota Cities 500.00 Lincoln Marketing Inc. 309.00 Gene Pass 307.66 Pearson Florist 66.27 Motion by McGowan, seconded by Coffel to approve the warrant listing dated August 17, 2009 as presented. Motion carried. Liaison Joos presented his report. Mr. Crooks reported on current water operations, noting usage of approximately eight million gallons per day, and a motor failure attributed to lightening surge. Mr. Crooks commented on a recent article in the Shakopee Valley News regarding the city's water system. That article corrected information on water levels incorrectly reported in the Minneapolis paper. President Mars noted it is important to clarify the information for our customers benefit. Page 28 of 59 The 2009 Water Rate Study was discussed. A 2008 state law required that a conservation rate structure be adopted by January 2010. To accomplish this, the rate study recommended a tiered structure for residential rates and a separate irrigation rate for commercial and industrial. The Commission discussed the amount of the increase and noted the study projected increases continuing. It was noted that a substantial part of the costs were for capital expenditures, but the intent was to meet those costs and have the Water Fund Balance in good financial condition by the end of 2014/2015. It was clarified that the rate study was a projection and the plan was to review things each year before changing rates for the following year. It was noted that the amount contributed by the Commission to the City General Fund was now based on revenues billed, and with the capital costs, revenues billed were increasing more than for typical operating costs and this affected the calculation. The suggestion was made to proceed with the rate increase for 2010 as proposed by the rate study and consider the contribution level question in the coming year. Commissioner Coffel questioned the level at which the higher cost tier began. The rationale used by the rate study in setting that level was discussed. Commissioner Coffel asked about cost control measures. Finance Director Schmid noted that CIP items were not released for construction without careful reviews, and noted that current expenses were below budget. Liaison Joos noted that conservation was important and the new rates do address that. Motion by McGowan, seconded by Braun to accept the water rate increase for 2010 as proposed in the 2009 Water Rate Study. Ayes: Commissioners Mars, Braun, Engler and McGowan. Nay: Commissioner Coffel. Motion carried. Mr. Athmann provided a report of current electric operations. In the absence of Planning/Engineering Director Adams, Mgr. Van Hout provided a Smart Grid Investment Grant application status update, noting that the application for a grant had been submitted by August 6. We expect to hear the decision by November. Commissioner Coffel noted that he would look for a business plan to support a decision to proceed before committing to do so. Motion by Braun, seconded by McGowan to approve the solicitation of consultants to assist in the development of an AMI system. Motion carried. Mgr. Van Hout recognized Ms. Petrich's participation as a member of the City of Shakopee's Ad -hoe Economic Development Advisory Committee. Liaison Joos, also on that committee, noted its goals and membership. Ms. Schmid reported on the status of the RFP for audit services recently issued by the Utilities. President Mars noted that any additional charges should be recognized. Commissioners McGowan and Coffel volunteered to review the proposals to recommend the selection of firm for audit services engagement, and President Mars so appointed. Item 10b: Financial Results for July 2009, was received under Consent Business. Page 29 of 59 Ms. Schmid provided an overview of the proposed 2010 Budget Planning Schedule. Commissioners Engler and Braun vobmteered to be on the wage planning sub -committee, and President Mars so appointed. Mgr. Van Hout noted the process to designate a voting delegate to the Minnesota Municipal Utilities Association. Commissioner Coffel is listed as an alternate. The tentative commission meeting dates of September 8 (Tuesday) and September 14 were noted. President Mars noted he would not be able to attend the September 8 meeting. Motion by Braun, seconded McGowan by to adjourn to the September 8, 2009 meeting. Motion carried. Cori'mission Secretary: Louis Van Hout Page 30 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: John Crooks, Utilities Manager FROM: Joseph D. Adams, Planning & ngineering Director SUBJECT: SPU Electric Service Cost Comparisons to Xcel Energy and MVEC DATE: March 7, 2019 ISSUE Attached are cost comparisons for each of SPU's electric customer rate classifications, residential, commercial, large general and large industrial services to Xcel Energy and Minnesota Valley Electric Cooperative (MVEC). BACKGROUND The State of Minnesota has established electric service territory for each serving utility to avoid duplication of infrastructure and congested right of ways. Each electric utility sets their rates differently, due to its unique circumstances, so it requires some analysis to accurately compare retail customers' costs, Electric rates may include several "add on's" or "riders "in addition to base energy ($/kwh) and demand ($/peak 15-minute kW). Some of these riders can be a power cost adjustment (PCA) or a Fuel Cost Adjustment (FCA) that is added or subtracted from the monthly bill to account for deviations in purchased power or fuel from the assumed level set in the base rate. This is a way to account for the real time daily fluctuations in those wholesale costs in between adjusting base rates. In principle, the PCA/FCA will rise in high demand periods i.e. summer and fall in low demand periods i.e. non - summer subject to an open market managed by the Federal Energy Regulatory Commission (FERC) and its designated independent regional transmission authorities, such as the Mid -West Interconnected System Operator (MISO). Each utility will calculate and apply its own PCA/FCA each month. Other riders may be for undergrounding lines due to relocation (RUC) mandated by the city and energy conservation programs (CPC) mandated by the state for example. DISCUSSION The attachments compare costs by month and annual totals for each utility's known 2019 electric rates using 2018 average monthly usage by each of SPU's customer classes plus the 2018 monthly Page 31 of 59 fluctuations in each utility's PCA/FCA. Xcel Energy as a state regulated Investor Owned Utility (IOU) has rates on file with the state of Minnesota. MVEC as a member owned cooperative does not have to publish its rates. The only rate class that is known by staff is their residential rates due to some staff having MVEC as their residential utility. The City of Shakopee has enacted a Franchise Fee Ordinance that applies to Xcel Energy and MVEC and the franchise fee rate is currently set at 3% of each utility's electric revenues with a "circuit breaker" applied to large customers that have annual electric costs over $950,000 at which point the franchise fee is reduced to 1 % for amounts over $950,000 annually. SPUC makes a payment in lieu of taxes (PILOT) in place of a franchise fee to the City of Shakopee equal to 2.71 % of electric revenues applied to all elements except for the CPC and the RUC. SPUC also donates free service to the City of Shakopee for the 2,000 plus street lights and some additional trail lights within its service territory. The combined total of SPU's contributions to the city (PILOT plus free service) is approximately equal to 3% of SPU's electric revenues, and these costs are embedded in SPU" s electric rates and not added on as a separate line item on customer's bills. Xcel Energy has no known residential customers within the City of Shakopee, only non-residential commercial and industrial customers. MVEC has mostly residential customers within the City of Shakopee, with some small non-residential service points to the city itself for street lighting within its service territory. When reviewing the data please keep in mind that the data represents simple average (mean) usage in each customer class. In each class, there are customers that use more and customers that use less. 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H rywwu+Mm�u>m ci N N M M N N 000coa0000d r mM�n ai �n io mrUir�?mrtO08NN ........... h m m Y� 0 0 m� � o pi o a g {.j vi .= o M v H �9r NinrmOmF. ul to U y M v.N..l.WI9f9H. N f9 V. r rrNhr W prm 1p ........... GOM 0'a'a w wmmm m c .b . ci vRR '4yyy e1 eINNNC9 'aonCi Ci D9 L QU M c� LLtl LL ........ ............ " m0O GO0) 0 rn0OmiGO0) W I0 a 'aa0000c000 9 = O (] V.(919H.N.d.f9(9H.6YU.f9 Oggi gVAR W 8 2 Cl cl lV r-a-C1N fh C1N e-N mom Hd'm 4lN my gMav,ramm ici vivvuinrwui cis v�o N N e.b.i91949d.Hl40f9V..9 nN rIYIN O o Ui ............ �O' I MtNOPO W 2 XM1r 1�h 4)rm 1�O O o 9 0 0 O C o 00f9H.00t4419190M r HS 9 b. 93 f9 5 Page 36 of 59 2019 Xcel & SPU Analysis .sgfbiog.S'N<'Ar V u �mmae-ve� x)Nl.94.BN)00N).H N m O .mO V r R .�cmrr ............ 00 .9.9V)(9.9di.9N.9 CJ C 5555mmNN NN U O O O O C O O O O Q O .9(9(9t9.986f9 �'ga 00(4nv, nvmi, G f�m�m�mRmO. �r9 rn u) ur w w .°-..Oem-NN<IQ-..bD h0 b6 a0 g ,z 2 h L m NNa-O 6{68mYl FFN y m �m �tmO�Fti. 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MM'CM ti�M .DMM boo of r.:mdOoocai o w ...wwww .wwww yy�� ONMCNC11 t4tppJOMO W RWi .U�Nmm M OM^'Nm n (ep ' 1 M O m 1 W M M N NrNrH w v.wwwwwwww4w ww+nwwwwwwwur.n wwwwwwwwwwww O O O b 0 O MMM,TOM M ai Ni ti Ci pi Ci [�c�t.i MM w0w0ww0w.0. wwwwwww.nw w6wwwww4wwww r 'n <eriv vi d. `u�brn chi rmiMMm��v vim wv.+9wwwwwwwww MWM W N N< V Of N O Y V N g GM 'v8 Nr O NV 1�O `-..�v��� ❑ v wwwwwv+wwww.9w viwwwwwwwwwww n M< N M NM M N N O M O s{ y� mM Mm O M� W< M W O m M N g d tmO h r N m W M P < <� �< g W N m< � M U - ww w.9wwwwww w.9 M M M M m m M 9 m M M W Page 39 of 59 1 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANAGE SUBJECT: PRESENTATION MADE TO THE SHAKOPEE CHAMBER OF COMMERCE PUBLIC POLICY COMMITTEE 12-11-18 DATE: FEBRUARY 28, 2019 City Council Request #1 — "Provide the presentation that was given to the Chamber of Commerce Public Policy Committee" At the Chamber's request on December 3, 2018, SPU Staff made a presentation to the Public Policy Committee in regards to questions raised concerning the SPU Water Connection and Trunk Water Charges. The presentation was made on December 11, 2018. Attached to this memo is the information provided to the Committee. There were also many questions answered by SPU Staff and after the presentation we were thanked for providing information that the Committee was not aware of. SPU Staff has since received no further questions or comments regarding the presentation from members of the Public Policy Committee or the Executive Director of the Chamber of Commerce. SPU Staff provided the same presentation to the Commission at their meeting on January 7, 2019, the first Commission meeting since the Committee presentation in December. The SPU Commission felt strongly that this information be shared with the City Council in providing the same informative presentation. Page 40 of 59 Agenda Public Policy Committee of the Shakopee Chamber of Commerce 3 pm, Tuesday, December 11, 2018 Resonate Community Church Office, 327 Marschall Road, Suite 365, Shakopee Committee Projects (2018 Priorities are Bolded) 1. Cost of Starting a Business in Shakopee Comparison a. SPU Commission John Crooks b. Study. Presentation Wayde Johnson & Bruce Loney c. Brochure? Michael Klemm d. Additional Development & Redevelopment Conditions e. Conversations with developers about the obstacles they face: I. Bruce: D. R. Horton il. Rob: Scott O'Brien Ili. Wayde: Gonzalo Medina and his consultant Paul Tucci 2. Candidate Forums Revised Policy Statement 3. TIFF 4. R4 Housing Plan Reports City Council Meetings Planning Commission Meetings Grown MN Visits Becky Ribbich City Council (7 pm) Planning Commission (7 pm) Date Committee Member Date Committee Member December 18 January 3 January 2 February 7 January 15 February 5 February 19 Page 41 of 59 Funding Mechanisms 1. Operations Fund — rate based with fixed charge Rates — Residential — up to 5000 gallons 2.49/1000gallons Over 5000 gallons 2.98 Commercial -- 2.28 Industrial —1.98 23.77% of water sales revenue is contributed to the City of Shakopee - $1.1 Million in 2018 2. Reconstruction Fund — rate based Rate —all customers - .25/1000 gallons With the decrease of the reconstruction fee and with no raising of water rates our customers will see the following in 2019 — Residential and Commercial rates down 6.6% Industrial rates down 7.5% THE FOLLOWING FUNDS ARE ESTABLISHED TO PROVIDE THE SPU COMMISSION DEFINITION OF LEVEL "A" SERVICE TO THE COMMUNITY —A ROBUST,REDUNDENT,LOOPED SUPPLY AND A DISTRIBUTION SYSTEM CAPABLE OF SUPPLYING WATER SAFE FOR HUMAN CONSUMPTION AT ADEQUATE PRESSURE FOR DOMESTIC, COMMERCIAL AND INDUSTRIAL APPLICATIONS AND FOR FIRE PROTECTION USES 3. Trunk Water Fund —fee based Definition —this fund finances trunk watermain oversizing agreements and fully financed SPU projects Policy— (1979) if it is found to be in the best interest of the water system that larger size mains than standard be installed for the overall benefit of the water system, that the Commission may elect to pay for the difference in the cost of materials necessary to provide for the larger mains Calculation methodology Collection Process Financials and History Page 42 of 59 4. Water Connection Fund —fee based What it is not Definition This fund finances wells, pump houses, storage tanks, booster stations, water storage tanks and water transmission line projects Policy (1983) that the Water Connection Charge shall be applied to all water connections made to, or newly drawing water from the Shakopee water system; and that the Water Connection Charge shall also be applied to all instances where increased water usage is indicated by an increase in SAC units or by other means, ie. metered water usage Calculation Methodology Collection Process Financials and History 5. WCC/TWC Comparatives Page 43 of 59 Water Capacity Charge Fees Fees Water Capacity Plus Cents Per Sq. Ft, By Res. Effective Charge Fees for No: Date (per equivalent SAC unit) Percentage Industrial Use Only 1 /1 /2010 $3, 895.00 9.2 953 1/1/2011 $4,136.00 6.2% 9.8 977 1/1/2012 $4,322.00 4.5% 10.2 1005 1/1/2013 $4,504.00 4.2% 10.6 1027 1 /1 /2014 $4,743.00 5.3% 11.2 1058 1/1/2015 $4,927.00 3.9% 11.6 1080 1/1/2016 $5,134.00 4.2% 12.1 1106 1/1/2017 $5,416.00 5.5% 12.8 1144 1/1/2018 $5,730.00 5.8% 13.5 1178 1/1/2019 $6,039.00 5.4% 14.2 1218 Page 44 of 59 Trunk Water Charge Fees Fees Trunk Water By Effective Charge Resolution Date Fees Percentage No. 1/1/2010 $2,210.00 952 1/1/2011 $2,347.00 6.2% 976 1/1/2012 $2,452.00 4.5% 1006 1/1/2013 $2,555.00 4.2% 1028 1/1/2014 $2,690.00 4.3% 1059 1/1/2015 $2,794.00 3.9% 1081 1/1/2016 $2,911.00 4.2% 1107 1/1/2017 $3,071.00 5.5% 1145 1/1/2018 $3,7.49.00 5.8% -i- $500 1179 1/1/2019 $4,451.00 5.4% .1- $500 1219 Page 45 of 59 2 f— ce Water Lateral Charge 4 4Y C CO o N N tt) 0 N 00 0 CV car ��•i O ' .±: 00 : a 0 cm -I c-1 s i Q co 0 Water Area Fee 0 0 N• CO 0 N CO u)• co 0 2018 City Code 0) ro L1 0) 00 2018 City Code C L 0 a_+ a) o) C C LI U cti 0 0 o COri co co ‘ZrN system access charge 2019 REC/SAC Eden Prairie 0 0 0 N Page 46 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSSION FROM: JOHN R. CROOKS, UTILITIES MANAGE SUBJECT: SERVICES PROVIDED TO THE CITY OF 3'HAKOPEE DATE: MARCH 6, 2019 In addition to the annual city transfer, commonly referred to as payments made in lieu of taxes (PILOT), there are other associated costs with services the Utilities provides to the City of Shakopee. The first attachment identifies the electric and water PILOT transfer payments. Also included are the calculated costs for maintenance and electricity for City's street lights, as spelled out in the SPUC/City Street Light Policy. As can be seen, the dollar amounts have increased significantly with the growth of Shakopee since 2000. Costs not included on the first attachment are in -kind services provided by SPUC. The second attachment is a listing of SPUC services provided to the City of Shakopee. Page 47 of 59 O a-+ 0 U a) aj 0 .O V1 � V 0 +, a) aJ {d •L CD L W a ,0 cu c a) 0. 173 al x F Ul a c a, 03 0 TOTAL COSTS Maintenance & Maintenance in C1' d' CO ei CO l 01 N 01 M N 01 01 CO O O D h O I. ci ,c Cr 01 et e-1 e-I I. 1.0 0 0ei 00 N e-1 N 01 eo1 01 Ps an 01 N ei 0100 0 N N O 00 O 01CO CP N 'Ct Cr '0 m CO IN ,j M CD n l: n Ol 6 'Ci' CD Uf 6' tD U1 O O' to CI' e4 CV e4 ,,,, m m 0 N O e-I 01 H M to CI' to 0 U1 CO h 171 Lf1 m 00 y ei N O ri CO U1 CO 01 CO 00 O O M N ci N M Uf Cr tO W 4 4 4 4 4 4 4 4e4 4 N N N N mi. N' N N ce;' N Lei 4.., 0 V} V} v1? Vh vF l). +1)' V) V? yr V} to of ? V ih i;n. } V? ri lO d' 0 a-i O 0 O h N CO 0 LEI CO 00 CO e-i h mrl Cfl m tO CO d' 01 00 + e-I CO CO N N COm 0 N N ri I Cr)Cr)(.0c-1 N N d tO a) d r-1 GO lD CO 00 m 0 N. a-+ o) H R p ct' O tLi 0 00 M m' Oi In U1' M 06 d tri Lr1 O d ei Ir. cz-I et 0 cN-I CO et .:I'm t0 N vii a 11 CO CO 00 0 N Mr-i 4- J 0 U i 0) Cn 1 O m C EC r co h CO i-I N CO d' N ci U1 a-1 N N 0 00 N CO CO 00 CO 01 Cr) 0 N 00 01 CO CO CO m tO 00 o a -I d' d 0) CA m 00 r-1 Lr1 m oO O d' d' 0 0I .-i h 00% h a) co 00 O co o 01 O LnLMr1 Ov c Lto O cria) mm Oho rn aa)oci i O SSD t1D n ltrihO CCDD Oh 0000 r•i ei ei e1 N ei e-I e 1 c-I r-1 r-1 tO m ei U1 u) O Ol 0 et' 0 0 CD c-1 co N. 0o h oo f 00 m 0 0O N N U'1 01 0 N 0 Lc) N h h CO CO c-I r 1 e1 h h h N 0 h CO 01 00 01 N m h N 0 01 0 01 CO 1.1 t ) 00' 4 N d n [t a-i tp to N d N N M rI ei ei 00 CD rd' 01 m 01) 00 h 0 U1 N r-1 N 1.C1 m tO d' 01 0 al h M d' d' Ln U1 Ln CD h CD h 00 CO 0 01 00 CO 00 0 0 0 r4 ri r4 r4 N N N et' 0 h 00 r-I m e-1 Ln CO et CO a-1 e-I Ol N 01 0) O O CO d c-I 00 01 m Ql d h N 0 C7l 'c m CI` m 4 r-I e1 N m ci 00 00 0 N d' r1 01 0 CO Ln Ln 1� ca-pi O N N Cr) M m et co 0o N O h 01 0 0mo NO r1 a0-i (0 0 cNO h d' 0 Ln h CO 01 0 Cr) 01 Cr) 0 0 1-1 ri N N CO CO H c^I r4 c-I a-1' e4 e-1 ri a -I 0 a -I N m d' 0 (.0 h CO 0 r1 N m d' 0 CD h 00 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 v-I0 0 0 0 N N N N N N N N N tV N N N N N N N N N m 00 at 00 m in co h Ln LA tO N CJ t-I h w CV to co 0 co r1 rs1 m h 01 N c-i 01 r1 H *Includes $610,000 for LED Street. Light Project funded by SPU from operations and conservation 01 0 N CV N N M:\2019\PILOT and Free Service Payment History.xisxioint Meeting Page 48 of 59 SERVICES PROVIDED TO THE CITY OF SHAKOPEE Sanitary Sewer Billing and Collection Storm Sewer Billing and Collection Space for Billing Inserts Commercial and Industrial Cross Connection Control Program Use of SPUC Equipment Use of State Conservation Funds for Qualifying City Projects Water for Fire Department Training Exercises Erecting the City Christmas Tree and Decorations Street Light Maintenance Street Light Relamping Electricity for Street Lights Page 49 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSSIO FROM: JOHN R. CROOKS, UTILITIES MANA SUBJECT: SPU ECONOMIC DEVELOPMENT EFFORTS DATE: MARCH 7, 2019 Should Shakopee Public Utilities be in the business of economic development with the City of Shakopee? This question has recently been asked by developers and the City of Shakopee. The answer is yes and that we are already in that business. Although we are not a bank, a lending organization and especially do not have the expertise of the City of Shakopee economic development staff, there are currently many ways SPU is critically involved in the growth of our community and service area. First, it is important to review what SPU is doing to promote the growth of Shakopee. Residential, commercial and industrial growth is at the core of any thriving community and it goes without saying that Shakopee has fared quite well during the past 20 years. The efforts in Shakopee are a model to other communities on attracting and retaining commercial/ industrial companies. This is accomplished by the efforts of many participating parties. Credit goes to the Scott County First Stop Shop, the City of Shakopee, numerous consultants, developers and yes, the Shakopee Public Utilities Commission. The attachment to this memorandum identifies current economic development efforts for Shakopee Public Utilities. Page 50 of 59 Current Economic Development Efforts — Contributions to the City of Shakopee - Energy Efficiency Programs For Residents and Businesses - Low Rates and Excellent Reliability - Clean Energy Choice Program For Residents and Businesses SPU Energy Sustainability Portfolio with No Coal Exposure - Shakopee Energy Park — 2017 Top Generation Plant in North America - MMPA Commitment to a 100% Renewable Energy Portfolio by 2025 - APPA RP3 Diamond Designation — Top 5% in the Nation Providing Water And Electric Infrastructure Ahead of Current Development Three Year Interest Free Payment Option for WCC Payment Individual Efforts with Current Development Page 51 of 59 SHAKOPEE PUBLIC UTILITIES MEMORANDUM TO: SHAKOPEE PUBLIC UTILITIES COMMISSION FROM: JOHN R. CROOKS, UTILITIES MANAGER SUBJECT: HISTORY AND STATUTORY AUTHORITY OF SPU DATE: MARCH 3, 2019 On Good Friday evening March 28, 1902, the switch was turned on at the Shakopee electric Tight plant that illuminated Shakopee. And for the past 117 years has "kept the lights on" in Shakopee. In 1909 Shakopee's water system was first constructed, and likewise for the past 110 years has provided clear, pristine, potable water to the City of Shakopee. A publication produced for the 100th anniversary of an electrified Shakopee will be provided at the Joint Meeting. The Shakopee Public Utilities Commission was duly organized in 1950 under authority of Minnesota Statues Chapter 453 and currently exists and is engaged in the local distribution and sale of electric energy and water as authorized under the provisions of the Act and Sections 412.321 through 412.391 of Minnesota Statutes. The Public Utilities Commission is also recognized in the Shakopee, MN Code of Ordinances in Chapter 32: City Organization. Attached is Chapter 32.22 - Public Utilities Commission. A brief presentation will provide an overview of existing and planned facilities to serve the tremendous influx of development in Shakopee and areas of the SPU service territory. SPU has been well positioned to address the utility needs of that residential/commercial growth in the past and future. Page 52 of 59 CHAPTER 32: CITY ORGANIZATION Page 1 of 11 Shakopee, MN Code of Ordinances TITLE III: ADMINISTRATION CHAPTER 32: CITY ORGANIZATION Of CHAPTER 32: CITY ORGANIZATION Section General Provisions 32.01 Precinct boundaries 32.02 Boards and Commissions generally, exceptions 32.03 Departments generally Employees, Boards, and Departments 32.15 City Administrator 32.16 Police Department 32.17 Fire Department 32.18 Public Works Department 32.19 Additional departments 32.20 Planning Commission 32.21 Board of Adjustment and Appeals 32.22 Public Utilities Commission 32.23 Parks and Recreation Advisory Board 32.99 Penalty GENERAL PROVISIONS I) § 32.01 PRECINCT BOUNDARIES. (A) First Precinct. The First Precinct shall be bounded on the south by Tenth Avenue, on the west and north by the corporate city limits and on the east by Market Street extending from Tenth Avenue to the northern corporate city limits. (B) Second Precinct. The Second Precinct shall be bounded on the south by Vierling Drive; on the east by Marschall Road to the northerly terminus thereof and thence continuing northeast http://library.amlegal.com/nxt/gateway.d11/Mirmesota/shakopee mn/titleiiiadrninistration/c..2/21/2019 Page 53 of 59 CHAPTER 32: CITY ORGANIZATION Page 9 of 11 1) § 32.21 BOARD OF ADJUSTMENT AND APPEALS. The Board of Adjustment and Appeals shall be the Planning Commission. (2013 Code, § 2.53) (Ord. 31, passed 10-25-1979) § 32.22 PUBLIC UTILITIES COMMISSION. (A) Generally. The City Public Utilities Commission, heretofore established, continues. The Commission shall have the full, absolute, and exclusive control of, and power over, all city water plants and systems, and all light and power plants and systems. The Commission shall also have control of, and power over, such public buildings that by agreement between the Council and the Commission, are placed under the jurisdiction of the Commission. This control and power shall extend to all parts, buildings, attachments, and appurtenances thereto; and to all apparatus, machinery, and material of every kind used in operating these plants and systems. The Commission is empowered to operate and control any other utilities subsequently acquired. (B) Membership. In accordance with 2002 Minnesota Session Laws, Ch. 226, as it may be amended from time to time, the Commission shall consist of 5 members appointed by the Council, and their compensation shall be set by the Council. No more than 1 member shall be a member of the Council. Each member shall serve for a term of 3 years. Commission members must reside within the corporate limits of the city at the time of their appointment to the Commission, and if they move outside of the corporate limits during their term of office, they shall tender their resignation to the Council who may accept or reject it. If the Council rejects the resignation, said Commissioner may complete the Commissioner's term of office. (C) Procedures. The Commission shall adopt rules for its own proceedings which shall provide for, among other things, at least 1 regular meeting by the Commission each month. It shall annually choose a President from among its own members. It shall appoint a Secretary who need not be a member of the Commission, for an indefinite term. The Secretary shall receive a salary fixed by the Commission. (D) Powers. The Commission shall have power to extend and to modify or rebuild any public utility and to do anything it deems necessary to its proper and efficient operation; and it may enter into necessary contracts for these purposes. (E) Employees. The Commission shall have power to employ all necessary help for the management and operation of the public utility, prescribe duties of officers and employees and fix their compensation. (F) Purchases. The Commission shall have power to buy all fuel and supplies, and it may purchase wholesale electric energy, steam heat, gas, or water, as the case may be, for municipal distribution, (G) Rates, rules, and regulations. The Commission shall have power, after informing the Council, to fix rates and to adopt reasonable rules and regulations for utility service supplied by the municipally- owned public utilities within its jurisdiction. A joint meeting shall be held between the Commission and Council when requested by either body. (H) Agreement with city. The Commission shall have power to enter into agreements with the Council for payments by the city of utility service; compensation for the use by either the http://library.amlegal.com/nxt/gateway.dll/Minnesota/shakopee mn/titleiiiadministration/c... 2/21/2019 Page 54 of 59 CHAPTER 32: CITY ORGANIZATION Page 10 of 11 Commission or the city of buildings, equipment, and personnel under the control of the other; payments to the city in lieu of taxes; transfers of surplus utility funds to the General Fund; and also agreements on other subjects of relationships between the Commission and the Council. The Commission shall also have any and all power and authority provided by law. All existing agreements between the Commission and Council are preserved. (I) Disposition. No utility, or portion thereof, shall be transferred from under the jurisdiction of the Commission and no utility, or portion thereof, shall be sold, rented, leased, or otherwise disposed of except as by law. (2013 Code, § 2.54) (Ord. 1, passed 4-1-1978; Ord. 337, passed 7-23-1992; Ord. 628, passed 4-25-2002) ink § 32.23 PARKS AND RECREATION ADVISORY BOARD. (A) Establishment. A City Park and Recreation Advisory Board is hereby established. The Park and Recreation Advisory Board shall have advisory powers and shall be subordinate to the Council. The duties of this Board shall consist of making recommendations to the Council on establishing policies and programs relating to park, recreation, and leisure services. (B) Duties. This includes, but is not limited to, the following duties. (1) The Board shall make recommendations to the Council regarding park development including the maintenance and upgrade of facilities and equipment, the naming of parks, and the location of new parks and what facilities they shall include. (2) The Board shall make recommendations to the Council concerning park land acquisition procedures and park dedication requirements. (3) The Board shall be responsible for submitting an annual and 5-year capital improvement program, outlining recommended improvements to existing and proposed park lands prior to July 1 of each year. (4) The Board shall make recommendations and submit to the Council an annual operating budget and schedule for recreational program fees. (5) The Board shall review and evaluate park and recreation programs and how these programs can and do fulfill the existing and future needs of the city, while preserving the city's heritage and traditions. The Board shall be knowledgeable of the City Council's vision and shall evaluate the programs based on how they meet the goals and action plans established by Council. (6) The Board shall endeavor to foster mutually beneficial relationships between the City School District, City Area Catholic Education Center, affiliated recreation organizations, and surrounding governmental agencies. (C) Composition of Cotnn2ission. (1) The Park and Recreation Advisory Board shall consist of 7 members appointed by the Council having staggered terms of 3 years each. Appointment shall be made by resolution naming the Board members and setting the term of office. Vacancies occurring thereafter shall be filled for the unexpired term of the vacant office and shall be by resolution adopted by a majority vote of the Connell. http://library.amlegal.com/nxt/gateway.dll/Minnesota/shakopee mnititleiiiadministration/c... 2/21/2019 Page 55 of 59 co • nv mar wra.2r et trOAW urnan sr IDVCullr:MIA. L"'s .i "ams co SPUC SERVICE TERRITORY SHAKOPEE PUBLIC UTILITIES k L_ N CO r co Page 56 of 59 0 U M Q r rto_3 u' 1, Ll .�; xn 1 uua+" /OW ; r\ " SERVICE TERRITORY EE PUBLIC UTILITIES S V. Fyp r"f. tyLL i''e o ,\ t_ WP S V is. L,8 ` 1 m C1 1 n o g - ti c _ ice}c., >ioN gV) Cl.. w d ! 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Also present, Mayor Brad Tabke, Councilors Lehman, Luce, Mocol, and Whiting, City Administrator Mark McNeill and Utilities Manager Crooks. The agenda was offered for approval. Motion by Mars, seconded by Joos to approve the agenda as presented. Motion carried. Utilities Manager Crooks presented the Council with a memorandum regarding power outage notification that covered the discussion which took place during the March 17 Commission meeting. It was noted that notification options will again be discussed at the May 19 Commission meeting. The Council members would like the Utilities to provide information to residents that acknowledges an outage and gives a general timeframe as to when service would be restored. City Administrator McNeill began the discussion of frozen water and sewer lines and the role of the Utilities in addressing the issue. Frost levels reached as deep as 8' in the metro area and caused 19 water service lines to become frozen in the ground. Discussion centered on the ownership of those service lines and the different methods used to thaw the services. SPUC will send letters to the affected customers at the beginning of the cold weather season and again, if needed, during extreme cold periods. Mr. Crooks presented an overview on Shakopee Public Utilities' long term infrastructure investments for the future extension of water and electric utilities to areas in southwest Shakopee. Long Term Groundwater Sustainability for Shakopee was discussed. Mr. Crooks presented information on a region specific groundwater model that was developed in 2005, and addressed Shakopee and the surrounding areas and their ability to provide an adequate source of groundwater in the 25-50 year timeframe. This model differs from the Metropolitan Council's metro wide groundwater model that was presented to City Council during a SCALE meeting on March 14. The Commission assured the City of Shakopee that the Utilities continually monitors groundwater levels and submits monthly analysis to the DNR, as required. Mr. McNeill discussed Sewer Access Charges and Water Connection Charges and their potential affect on new businesses and residents. Mr. Crooks informed the Council how the Water Department is funded. The Water Connection Fund Policy states this fee is charged when new properties connect to the water system. The fund pays for the production, transmission, Page 58 of 59 storage and treatment of the water supply needed to serve the new customers. A comparative analysis of the Water Connection Charge with neighboring communities was presented for Connell review. Mr. Crooks also stated that SPUC has allowed, under certain circumstances, a three year option to pay the charge. President Helkamp said the Utilities is a business enterprise and has not been involved in economic development issues in the past. Commission Olson stated both residents and businesses benefit from the low water and electric rates, as compared to other utilities. Members of the City Council were presented a historical review of contributions SPUC provides annually to the City of Shakopee. The Cor_nmission suggested the City retook at implementing a franchise fee for the two other electric providers servicing portions of Shakopee; Xcel Energy and Minnesota Valley Electric Cooperative. Mr. Crooks stated the existing calculation method for the city contribution is not planned to change and SPUC will continue to willingly contribute funds annually to the City of Shakopee. Mr. Crooks provided the City Council with comparative spreadsheets for both water and electric rates and how they contrast with neighboring utility rates. Commissioner Mars added the rates compare very favorably with other utility rates. Motion by Joos, seconded by Olson to adjourn to the May 19, 2014 Commission meeting. Motion carried. Commission 'ecretary: John Crooks Page 59 of 59