Sewer Main Freeze

This last winter was a tough winter for all of us including utility lines.  All across the state people suffered with frozen water lines to their homes and some water mains froze as well.   Water typically maintains a ground water temperature of about 50 degrees however with the heavy frost this year many service lines froze.  Keeping them clear requires periodic use when the temperatures were as cold as they were.

Breezy Point does not provide water service so those issues didn’t pose a problem but we did have a sewer main freeze.  This is somewhat unusual as most sewer mains have flow that is warmer than ground temperature.  Sewer carries flow from households that are either room temperature or higher given wash water from clothes, dishwashers and general use. 

The line that froze was in Airport Road. In addition to the sub-zero temperatures there are two factors that contributed to the problem.  One included a manhole that is six feet deep.  The line is insulated which should have helped the situation but the other issue with this line is it has low flow.  With a limited number of users, flow was not keeping the line warm.  Without the flow, insulation really does no good.  With a higher number of users it increases flow in the main and therefore increases  the temperature.  A higher flow also moves solids down the line helping alleviate issues that could be caused by blockages. 

The freezing of water and sewer mains are considered an act of god.  A blockage of a sewer main in general is not something the city is responsible for.  In this instance the city insurance carrier determined that the city was liable in that the line was shallow and has limited flow.  A shallow line with adequate flow is fine but with the limited flow it needs additional attention.  The insurance carrier addressed the damages suffered by the property owners but also put the city on notice that additional maintenance will be needed in the future when it comes to this sewer main.

It is important for all home owners to recognize that the city is not liable for sewer backups in most situations.  The city attorney has stated the city doesn’t insure against acts of god.  With that in mind it is important for property owners to recognize that having sewer backup coverage on their property is a wise investment.  The additional coverage is usually at a limited cost.  It would be worthwhile to review your homeowners policy to see if you have this coverage and to consider adding it if that coverage is missing.   

2013 Audit

At the April City Council meeting the 2013 audit was presented by our auditor Schlenner Wenner.  Highlights of the audit were presented which included revenues and expenditures of the general fund, sewer fund and special revenue funds.  Overall the city is in good financial shape.

On the revenue side the city ended the year $51,648 ahead of budget.  A portion of these funds, $27,181, were owed the city in 2012 but came in after the first of the year.  The remainder of the funds included collections of revenues ahead of budgeted amounts. 

 

On the expenditure side of the budget it showed a negative variance to budget of $76,807.  This is somewhat misleading as a transfer, that wasn’t budgeted for, was included in the total amount of expenditures.  Part of the transfer, $232,301, is revenues that were moved from the General Fund to the Revolving Capital Fund.  This transfer activity is done annually to balance the general fund reserves at a threshold of 45% of the general fund budget for the current year.  These funds are preserved in the Revolving Capital Fund.  Removing that transfer from the expenditures results in a positive variance to budget of $103,846.  

The Revolving Capital Fund, with the transfer discussed above and other resources improved its balance from $633,691 to $957,742.  These funds are set aside for future use in purchasing equipment or making improvements rather than incurring debt service.  The funds are segregated and earmarked for specific purposes.   

Debt service shows changes made with a total of $1,600,000 paid in 2013.  Outstanding debt at year end shows $4,565,000.  This amount is accurate but needs some explanation.  Part of this debt includes debt for a crossover refunding where funds have been escrowed to pay a portion of it.  In 2014 there is a total of $2,415,000 to be paid of the outstanding debt amount.  In January of 2014 two bonds were paid off for a total of $1,030,000.  The refunding bond escrow will pay $1,285,000 leaving a balance of $100,000 for the city to pay in 2014.  This reduces the overall outstanding debt to $2,150,000 at year end 2014. 

The sewer fund shows total assets of $3,461,032.  Of this amount $3,210,343 is reserved for capital expenditures.  The sewer fund, with all funding sources considered, ended with a positive variance of $215,749. 

The auditor was pleased with the position of the city.  Fund reserves in the general fund are about 51% of the budget.  The city is well positioned to address costs with the revolving capital fund.  Debt service is being drawn down and the bond rating of the city has increased two steps.  As stated at the start, the city is in good financial shape.

Seal Coating Revisited

I wrote earlier about the city accomplishing seal coating of city streets this summer.  The issue of seal coating had to be revisited as the figures used in estimating the cost were in error.  We had used a figure of $0.65 per square foot when the real cost estimate was $1.65 per square foot.  A budget of $30,000 was available but with the change in cost the overall cost for the proposal was closer to $70,000.  

The city council reconsidered the situation.  Although we have budgeted $30,000 there are also resources available to use in funds earmarked for future improvements.  Making up the difference in the cost can be accommodated with these funds.  Looking at the project in other ways was also a possibility.  This could be a two year project accomplished in one year with no seal coating done in 2015.  The city could budget for the remaining amounts in 2015.  The city also could reduce the scope of the project to do less.  

After discussion it was felt that the city should continue with the project scope as originally proposed.  Funds can be made available from elsewhere and whether or not we do a seal coat project next year or replenish the funds will be determined when we work on the budget for 2015.  It was felt the area proposed for seal coat was well defined and made sense to accomplish

The roads to be seal coated this year remains as follows:

1.     North Birchwood Drive between Breezy Point Drive and North Drive

2.     North Pinewood Drive between Breezy Point Drive and North Drive

3.     North Spruce Drive between Breezy Point Drive and North Drive

4.     North Drive from Co. Rd. 11 to North Lakeview Drive

5.     North Lakeview Drive between Breezy Point Drive and Weavers Point Road

6.     Weavers Point Road from Co. Rd. 11 and intersection of North Lakeview Drive

7.     Wolf Lane from North Lakeview Drive to Weavers Point Road

8.     Gopher Lane from Wolf Lane to Weavers Point Drive

9.     Fox Loop from and to Weavers Point Drive

The project has not been scheduled as of yet.  Bids are being taken on a county wide basis with Crow Wing County, Baxter and Breezy Point being involved.  Bids will be received in Crow Wing County until May 7, 2014 at 10:00 a.m.  Given the quantities involved we’re hoping to get great bids.   

Setting speed limits

What do Ranchette Drive, Ski Chalet Drive, Dove Street and Weavers Point Road have in common?  They all function as Through Roads and are considered to be 30 MPH as they are in the city and are not posted otherwise.  Anyone who travels these roads knows it can be difficult to keep their speed down to this limit at times so a request was made to review them for an appropriate speed. 

The state provides guidance to cities in setting speeds under certain circumstances.  Criteria used are things like the number and distance between cross streets or the density of housing.   The authority the city has to set speed limits is rather narrow.  If the criteria isn’t met the city needs to request a speed study to be done by MnDOT.  Once this is done the speed is posted as determined by the speed study. 

The Breezy Point Police Department reviewed these streets to see if a speed adjustment is possible based on the criteria available to the city to designate a speed other than 30 MPH.  The city council reviewed the information and made some decisions regarding the speed limits on these streets.  The decisions made will set the following speed limits and signs will be posted once weather permits.

Dove Street – 35 MPH from Mohican Circle west, 30 MPH from Mohican to Co. Rd. 4.

Ranchette Drive – 35 MPH to south to Navaho Trail

Ski Chalet Drive – 35 MPH

Weavers Point Road – Request a speed study to be done by MnDOT to establish speed.