05-03-1993 CC MIN - Laserfiche WebLink

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. . . Elk River City Council Minutes May 3, 1993 Page 4 8. Joint Meeting with Elk River Utilities The Elk River Utilities Commission was present for this item. Present were Jim Simpson, Bill Birrenkott, Bob McCartney, George Zabee, and Jim Tralle. Mayor Duitsman informed the Elk River utilities that the Council had discussed this issue and suggested requesting the Elk River Utilities to use a $700 Water Connection Charge (WCC) and to request a new charge of $300 which would be a Water Availability Charge (WAC). He stated that these terms would be considered legal according to State Statutes. Peter Beck, City Attorney, informed the utilities that it was best to divide the fees into a WCC and a WAC as both are authorized by State Statute. He indicated that the Utilities Commission has proposed that the WCC and WAC would both be charged at the time of connection, except for new plats. He stated that new plats could pay the WAC at the time of final platting. Property that is not platted or which has already been platted would pay the same charge at the time of connection. Discussion was held regarding collection of the fees for commercial plats. Bill Birrenkott suggested charging the minimum at the time of platting and collecting the balance at the time of connection. Following this discussion, it was determined that the WAC would be $300 and the WCC would be $700. Mayor Duitsman informed the Elk River Utilities that it was decided by the Council that $375,000 from Tax Increment District No. 4 would be contributed for the building of the water tower in the west. He also indicated that the Council decided that the $120,000 contributed by the utilities Commission to the School Street water tower would not be returned as these monies have already been used for financing industrial land for the City. Mayor Duitsman also suggested that the Utilities may not need to increase the WCC at 4% on a yearly basis based on the growth in the City. He suggested an annual review or an adjustment of the rate each year. Jim Simpson indicated that the Elk River Utilities are considering a plan to review all fees on an annual basis. Discussion was held regarding the future available funds for funding a water tower in the eastern portion of the City. Bill Birrenkott indicated that based on 1987, the worst case scenario would allow $206,000 for the financing of a water tower and well in the east. Mayor Duitsman stated that planning a water tower in the eastern portion of the City may be premature at this time as the residents and property owners have not been consulted. He stated a meeting may be held this summer with the property owners in the eastern area of the City regarding this issue. Discussion was held regarding the need for a water tower in the northeastern section of the City. George Zabee indicated that if the need is there, the Utilities should act on the present bids and order the water tower.