Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, October 7, 2025 5:30 PM Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Meeting Topics 3.1. Utility Rate Study Update 4. Adjournment Page 1 of 39 Date: October 7, 2025 Meeting: City Council Agenda Number: 3.1 Item Type: Other d ITEM REPORT Item Activity: Discussion Prepared By: Pa Thao, Finance Director Department: Finance Item Title: Utility Rate Study Update Action Requested: Discussion only Information/Background: Ehlers will provide an update to the 2025 Utility Rate Study that is designed to do the following for the 2026 - 2027 utility rates: • Implement inflationary increases to utility rates • Provide changes to water and sewer rate structures Formal approval of the 2026 rates will be presented to Council December 2025. Resources/Financial Impacts: • Budget – Utility Funds Relationship to City Policies: Three year best practice study update Supporting Documentation: 1. Staff Presentation Page 2 of 39 Utility Rate Study Update August 6, 2025 EdinaMN.gov Page 3 of 39Overview Utility Systems - Capital Planning Update Utility Enterprise Funds - background Ehlers 2025 Analysis Questions and Feedback Page 4 of 39York Trunk Sanitary Sewer Improvements York Avenue, Hazelton Road, 69th Street, 65th Street Area 4: 69th Street to 66th Street Area 5: 65th Street – Drew to York Area 6: Hazelton Rd Area 7: 69th Street Page 5 of 39South Trunk (Cahill) Sanitary Sewer Improvements Under France Ave 72nd Street Oaklawn Avenue Gilford Drive Kellogg Avenue Hibiscus Avenue Under TH100 Estimated at $60M over 10-years Page 6 of 39Lincoln Londonderry Sanitary Sewer • Not included in the rate study • $20M to $40M Page 7 of 39Water Treatment Plant #5 Layout and Size of a Water Treatment Plant • 3 Well WTP or 3000 gallons per minute • 2 Wells are connected already Estimated Cost in 2025 Dollars 1. $18. 5M Estimated Construction 2. $4.6 to $6.5M Construction Contingency 3. $1.8M for water system and well integrations 4. $4.7M professional services 5. $31.5M Page 8 of 39Water Treatment Plant #5 Schedule • Early 2026 old Fire Station #2 Demo • 2026 York Town Park Master Plan • 2027 – 2028 Design • 2028 – 2030 Construction Page 9 of 39 Flood Risk Reduction Strategy • 2018 Water Resources Management Plan included commitment to develop a Flood Risk Reduction Strategy • 2019 convened Flood Risk Reduction Strategy task force • 2020 Flood Risk Reduction Strategy ado…

Okay. Five thirty one and call the city health and work section leading to order is Tuesday. It's over seven twenty twenty five and as our clerk chair Allison called the roll. Council member aden here on the member Jackson here on the little years. Your member is here. You're here. You're here. We've got a singular topic this evening is utility rate study update. We're going to go through and because at the end of the day we think we'll think of how many capital improvement projects we want to undertake at one time. Over time. Yeah. So here we go. You roll it out. We've got manager Neil. I'm very director Chad Norman. Todd Tower, finance director and Nick Ant and our senior municipal advisor from Ehlers here with us. Just for the record. So okay. Our presentation to tonight at work session is all about utilities utility. Utility projects in our water sewer and waste in storm sewer utilities and also the underlying rate structure that we are looking at in terms of providing funding to do those projects. So in terms of the presentation tonight we want to start with the actual projects themselves the proposed capital investments and then we'll go from there to the money part. So if we could we've got a lot of content to get to you tonight and we've tried to put this together to reserve a sufficient amount we hope a sufficient amount of time for you to have dialogue as well. Chad. Okay. So just wanted to get into some of the bigger projects that we've been considering for many years that are now in in somewhere in the past. Rate study now this is an update to those rates studies. So the first one if you recall the trunk York Avenue trunk sewer improvements. We've been working on this. We've completed three phases. They're completing one third phase right now. That project will be complete in about a month. Areas four, five, six and seven or aisleton road in West 69 are still in the capital improvement plan as part of this rate study. So just a reminder we continue to upsize the sanitary sewer. To support development within this area. This project's unique is that there's been developments basically paying for these upgrades as it happens because of the sack and whack fees that happens. So this one is kind of funding as we go with the development that's happened within this area the last 10 years or so. And these costs were again historical costs but just showing you the different stages and where we're at. So these other four stages are programmed in the CIP. The other big one that we put in during the last CIP was the South trunk. We've also called it the K Hill. San Jose who improvements this goes between an under France Avenue on the east and high 100 on the west. This opens up potential development in the K Hill industrial park area. We've had a few developers come through and asked to densify some properties and we've had to say no we don't have capacity. So this was a priority of the council a few years ago we did initial study probably five ye…