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of SAC and WAC is needed and if so, for how long. The SAC is estimated at $234,000 and the <br />WAC at $175,000 based on current rates. The good news is that the redevelopment plan calls for <br />both the city and Utilities to get all of its SAC and WAC fees. The less-than-great news is that we <br />may have to wait a while to receive payment. <br /> <br />If necessary, staff supports the delayed payment for SAC and WAC for this redevelopment project <br />for both buildings. This situation for special conditions for payment of SAC and WAC is unique to <br />this redevelopment project in the Central Business District and in this case, one which the HRA <br />solicited proposals/developers. <br /> <br />The second part of this agenda topic is a general update on the parking plans for downtown. In this <br />regard, the plans still call for the Utilities building to be removed, Highway 10 to be closed at ICing <br />Avenue, and for the parking lot to be expanded. It is scheduled for the Utilities building to have an <br />environmental audit this fall. Parking lot plans are now being developed. The parking lot plans will <br />be approved in the winter. The building will also be removed sometime in the winter. And finally, <br />construction of the parking lot will take place in late spring. TIF funds ',viii finance this <br />improvement. <br /> <br />MECHANIC PROGRAM (Item 2.4.) <br />No attachments are included for this item. This is a general verbal update item per request from <br />John Dietz. Both Phil Hals and Bryan Adams will be available to discuss this topic. <br /> <br />WATER FACILITIES (Item 2.5.) <br />Please see the attached memo from Bryan Adams on this topic. A note at the end of this memo <br />from Bryan indicates that some type of well facility in west Elk River may be needed in the future. It <br />is acceptable for this well facility to be on city property only if it does not impact development <br />options. The site being considered is the 3 1/2 acre parcel across Orono Parkway from City Hall. <br /> <br />SHARED BUILDING OPERATING EXPENSES (Item 2.6.) <br />Early on in the building project there was a meeting between staffs and an acknowledgement that <br />there will be some shared operating expenses with our new arrangement. We are currently tracking <br />all of these expenses and a final determination on a fair-share split will be made at some future date. <br />Shared expenses include such things as garbage service, janitorial service, gas bill, and <br />building/grounds maintenance. <br /> <br />S:kCouncilkPat\2004kjtcouncilutilitiesmtg. doc <br /> <br /> <br />