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<br />. <br /> <br />. <br /> <br />-. <br /> <br />JOINT MEETING OF THE ELK RIVER CITY COUNCIL <br />AND THE ELK RIVER UTILITIES COMMISSION <br />HELD AT THE ELK RIVER POWER PLANT <br />WEDNESDAY, FEBRUARY 17, 1993 <br /> <br />Councilmembers Present: Mayor Duitsman, Councilmembers Scheel, Dietz, <br />Farber and Holmgren (arrived at 6:15 p.m.) <br /> <br />Commission Members Present: <br /> <br />Jim Simpson, Jim Tralle and George Zabee <br /> <br />Staff Present: <br /> <br />Pat Klaers, City Administrator; Terry Maurer, City <br />Engineer; Lori Johnson, Finance Director; Bill <br />Birrenkott, utilities General Manager; Glenn <br />Sundeen and Bob McCartney, Elk River Municipal <br />Utilities <br /> <br />Others Present: <br /> <br />Rick Foster, John Weicht and Don Heinzman <br /> <br />Mayor Duitsman called the meeting to order at 6:10 p.m. <br /> <br />Mayor Duitsman gave a short introduction of the topic relating to financing <br />water towers. He then turned the meeting over to Bill Birrenkott to discuss <br />the information that has been reviewed by the Utilities commission. <br /> <br />Roger Holmgren arrived at this time. <br /> <br />Bill Birrenkott reviewed a memo he had written regarding the water tower <br />financing issue. He indicated that previously the need had never come up to <br />increase Water Access Charge (WAC) fees in order to set aside funds for a <br />water tower. Bill indicated that in the past, WAC fees have been mainly <br />used for watermain improvements and expansions. Recently, accumulated <br />WAC fees have also been used for the financing of the well and treatment <br />facility near Orono Park. The WAC fees have recently increased from $300 <br />to $700 per connection. This increase will generate funds to help finance <br />future wells that are needed, but it is uncertain as to whether or not any <br />funds from this WAC fee will be available for the financing of water <br />towers. <br /> <br />Bill Birrenkott introduced the idea of a Water Impact Fee which could be <br />charged to the developer of vacant lands and the money would be set aside to <br />pay for water towers. Bill also discussed the possibility of using TIF <br />funds and requested that the Utilities payment of $120,000 paid to the City <br />to fund the 1985 TIF issue be refunded to the Utilities and be applied <br />toward the construction of the next water tower. <br /> <br />Mayor Duitsman asked whether projections had been made as to the water fees <br />and revenues that would be received over the next few years. Bill <br />Birrenkott indicated that the net water income, excluding the WAC fees, is <br />now approximately $120,000 per year, but no future projections had been made. <br /> <br />Utilities Commission member, George Zabee, stated that there were several <br />criteria he felt the Utilities should look at when financing water towers: <br />