Lanesboro Joint City and Public Utilities Meeting
Tuesday, May 16, 2006
Council Chambers, 6:00 p.m.

Present:
Council: Steve Rahn, Tom Dybing, Joe O’Connor, Robert Norby and Kevin Drake
Public Utilities: Gerry Evenson & Dennis Schuck
Visitors: Lloyd Johnson, CPA, Joy Harris, Mike Bubany and Wanda Hanson

Mayor Steve Rahn called the joint meeting to order.

Lloyd Johnson, CPA and Joy Harris: City and Utilities Audits
Johnson started off by apologizing for the delay in getting the financials to the Council and Commission sooner. He started by going over the City financials. He explained that the MD&A is written by Torgerson and that he felt she clearly identifies the City’s position financially. He went over how the City’s assets have increased which is a good sign of sustainability. He also noted that the funds have gone down, but mainly due to the capital purchases in 2005. He stated that the assets went up significantly more than the funds went down. He asked the Council to read the MD&A and that by doing this they would get a clear picture of the financials. Johnson went over many other areas of the financials.
Johnson then went on to the Utilities. He did note that the Utilities are back in the black for a positive net income. The water and sewer still look as if they are having difficulties, but that it was his understanding that with the increases implemented in 2006 that should change. He was impressed with the improvements made in the Public Utilities. He suggested separating out the cash through the different departments of water, sewer, electric and garbage. He said that this would help identify even further areas with needs of improvement. Johnson thanked the City and offered that they could call him or Torgerson on any questions with the financials.

 

Mike Bubany: Capital Planning
Bubany explained that he sat down with the City employees to find out their needs and wants for the next 10-20 years. The various items for which the employees came up with totaled 5.5 million dollars. Obviously, the City and Utilities would not be able to make all of the improvements and purchases within a year, so it was the group’s opportunity to slim down the choices and set them up in phases for which the City could be comfortable with the changes. Bubany went over the various characteristics of Lanesboro such as the revenues that the City receives verses those of other Cities throughout Minnesota of comparable size and also in comparison to other Cities in the region. He also compared utility rates with the same range. It was found that through assessments, taxes and rate changes the phases were possible over a series of time. Another thought that was discussed was implementing a local tax to help pay for some of the improvements needed. The group broke down needs as far as next year, 8-10 years from now and 15-20 years beyond that. Bubany will take all of the ideas discussed and put them together for an overview of the initial step of the Capital Planning Process. Bubany thanked the Council and Commission for their time and will be working in the future to assist the City in their capital planning needs.

With no further business at 8:13 p.m., O’Connor made motion to adjourn, second Dybing, motion carried.

Respectfully submitted,

Bobbie Torgerson
City Administrator

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Lanesboro Public Utilities
Council Chambers
May 16th, 2006 – following joint meeting
MEMBER(S) PRESENT: Evenson, Drake & Schuck
MEMBER ABSENT:
OTHER(S) PRESENT: B. Torgerson, J. Peterson

Public Utilities Meeting Called to Order:
Evenson called regular meeting to order.

Agenda:
Torgerson asked to add Jerry Haugen water heater reimbursement to the agenda, Drake made motion to approve the amended agenda, Schuck second, motion carried.
Minutes:
Drake made motion to approve minutes as read, second Schuck, motion carried.

HOUSEKEEPING:
A. Bills
Drake made motion to approve and pay bills as presented, second Schuck, motion carried.
B. Administrator’s Report
Torgerson went over the financial statements.
C. Past Due Utility Bills
Torgerson advised Utility to cut off people due to the Cold Weather Rule ending on April 15th and that so many accounts are delinquent. Evenson directed Torgerson to cut off those that have the final warning letter.
D. UMMPA
St. Charles meeting, Gerry and Bobbie went to the meeting. DPC will be offering UMMPA members a group rate. St. Charles is looking at a bridge contract from DPC. Evenson recommended joining UMMPA, along with Torgerson. The Commission discussed options for the utility’s future. Evenson made a motion to join UMMPA, second by Schuck, motion carried.
E. Electric Rates
Commission discussed the need to gradually increase the rates now to help defray the burden in the future.
F. Line and Power Plant Upgrades Updates
Switchgear room needs to be updated, have not heard yet from Berkvam. Peterson talked to landowners about easements for North Tie. Possibly need four easements. Peterson will get bids pitch roof, Torgerson will contact Norse Valley Construction to see if they do that type of work.
G. Water Updates
There was a water leak by theatre. Live tap was done, main cracked around it, did not leak around it. The person showed Jerod rust and said the main was cracked before. Contractor is blaming it on the PU. Utility will have to wait for results. No utilities will be turned on until fix is paid for and parties work out who pays for what.
H. Sewer Updates
Bar Screen and trickling filter need repair and replacement. Bar Screen has been ordered, getting a quote on trickling filter.
I. Jerry Haugen Water Heater
Jerry Haugen wants some type of reimbursement for his water heater. He states that it was only three years old and that when the Utility workers flushed the hydrants they wrecked his water heater. The Utility stated that they would need proof of age and proof of reason for failure. Drake made motion not to pay this bill as presented, second Schuck, motion carried. It was stated that if he can provide that information we will take another look at it.

ADJOURN:
At 8:44pm, Drake made motion to adjourn, second by Schuck, motion carried.

Submitted Respectfully:

 

Bobbie Torgerson, City Administrator/Clerk

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City of Lanesboro Steven L. Rahn, Mayor | Bobbie Vickerman, City Administrator 202 Parkway Avenue South - - Lanesboro, MN 55949 507-467-3722 | lanesboro@acegroup.cc