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HomeMy Public PortalAbout03.15.2022 Work Session Packet Posted 5/29/2009 Page 1 of 1 WORK SESSION AGENDA MEDINA CITY COUNCIL Tuesday, March 15, 2022 6:00 P.M. Medina City Hall 2052 County Road 24 Meeting to be held telephonically/virtually Pursuant Minn. Stat. Sec. 13D.021 I. Call to Order II. Manganese Presentation III. Treatment Plant Expansion Feasibility Report (located in regular meeting packet) IV. Water Meter/Reading Equipment Discussion V. Water Equipment Funding Sources Discussion VI. Adjourn Posted 3.11.2022 Telephonic/Virtual Meeting Call-in Instructions Join via Microsoft Teams to view presentations at this link: https://medinamn.us/council/ For audio only dial: 612-517-3122 Enter Conference ID: 342 354 544# 1 TO: Honorable Mayor and City Council FROM: Steve Scherer, Public Works Director DATE: March 03, 2022 MEETING: March 15, 2022 SUBJECT: Radio, VGB Drive-By-Unit, and Handheld Replacement Radio Replacement The existing water meter reading system in use at Public Works must be upgraded because the system has been phased out by the manufacturer, and technical support for any issues that could arise is no longer available. We currently use two radios (Type R and Type M) with two separate receivers to read water meters. The original drive-by unit is only capable of reading Type R radios and is also phased out. The handheld for the Type M radios is near full capacity with no additional upgrade options that would allow it to read more radios. The lifespan of a Type R radio is 20 years. Although we have replaced some Type R models, approximately 1225 are still in service; and the majority of those are near or past their life expectancy. For these reasons it is necessary to replace the aging Type R radios with the new Type M radios, and to add a new VGB (drive-by unit) and handheld with the capacities to read them. We continue to monitor price increases and lead-time challenges on this commodity. I have aggressively negotiated a price reduction of $27 per unit, contingent upon placing an order for the total number of replacements needed plus enough radios to cover 2022 resale radios for a total of 1300. Funding for this undertaking will derive from water and sewer (water meter usage is billed from both utilities). Staff has planned and budgeted for this expenditure over the last several years, with reserves available in the operational fund. Staff Recommendation: Direct staff to proceed with the order for 1300 Type M radios, a VGB drive-by-unit, and a handheld with funding from the water and sewer operational funds, for a total expenditure of $213,600.00 MEMORANDUM Agenda Item #WS4 1 TO: Honorable Mayor and City Council FROM: Steve Scherer, Public Works Director DATE: March 09, 2022 MEETING: March 15, 2022 SUBJECT Water Equipment Funding Staff has planned for upgrades to the treatment plant and the meter reading equipment for several years, therefore we are in a good financial position to support these projects. Below, the balances outline current amounts in the water capital and water utility funds. The capital fund is designated for required expenditures to expand or add to the current water system. The utility fund is designated for operations and replacement items. Because of other projects being planned, Staff recommends utilizing an inter-fund loan, and/or bonding in lieu of depleting the available cash in the capital fund for completion of the plant expansion. Reading Equipment Replacement Total Cost: $213,600.00 Media Replacement Cost Estimate: $300,000.00 Total: $513,600.00 Water Utility Fund (User Fees) Current Balance: $3,729,000.00 Actual Annual Revenue (2021): $1,700,000.00 Actual Annual Expenditure (2021): $1,050,000.00 Water Treatment Plant Expansion Total Cost: $2,300,000.00 (less the media replacement) Water Capital Fund (Connection Fees) Current Balance: $2,006,000.00 2022 Debt Service Transfer: $205,338.00 2023 Debt Service Transfer (Final) $206,794.00 Estimated Annual Revenue $340.000.00 (from connections) RECOMMENDATION Staff recommends a combination of water capital, interfund loans, and/or bonding for the treatment plant expansion. MEMORANDUM Agenda Item #WS5