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Elk River City Council Meeting October 25, 1993 Page 4 e policy. The assessment policy indicates that trunk sanitary sewer and water assessments will be on a service district basis. Terry Maurer explained that the assessment policy manual is outdated and staff is in the process of updating the manual. He further indicated that past practice has been to assess trunk sewer and water out to benefitted p~operties at the rate of $3,800 per acre. He indicated that Mr. Foster is contesting the charge of $3,800 per acre and feels the City should follow the method of assessment as stated in the assessment manual. Councilmember Farber concurred with Mr. Foster in that the City should follow the assessment manual. Rick Foster stated that the assessment manual states that the developer pay the actual cost of the assessment. He indicated that he would be willing to pay the City the actual cost to run the trunk line. Terry Maurer indicated that the City's current policy of $3,800 per acre is based on the belief that all properties should pay the same fair and equitable amount for the benefit of trunk sewer and water. Terry Maurer further indicated that the project in this sewer and water district will not be completed for a number of years, and, therefore, the actual cost will not be able to be determined until the project is complete. e Councilmember Dietz stated that if the Council decides to charge the developers the actual cost of a trunk system, he will not be in favor of charging $3,800 per acre for the east Highway 10 utility if the $3,800 is not the actual cost. He further indicated he would like more information on this policy before making a decision. Mayor Duitsman stated he would like to defer action on this issue until the policy can be further studied. COUNCILMEMBER HOLMGREN MOVED TO REFER THIS MATTER TO A FUTURE DATE UNTIL THE CITY ENGINEER AND STAFF HAVE SUFFICIENT TIME TO REVIEW THE EXISTING POLICY. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.5. Consider Adoption of Trunk Sanitary Sewer and Water Assessment Roll for CherryHil1 Bluffs 2nd Addition Lori Johnnson, Finance Director, indicated that the signed amendment to the Developer's Agreement for CherryHill Bluffs 2nd Addition has not yet been received. The amendment to the Developer's Agreement calls for a per lot charge to be paid when a Certificate of Occupancy is issued and eliminates the need for a special assessment for trunk sanitary sewer and water. e Rick Foster stated that he would sign the amendment to the Developer's Agreement. COUNCILMEMBER SCHEEL MOVED TO CONTINUE A DECISION ON THIS ISSUE UNTIL THE OCTOBER 26TH COUNCIL MEETING IF AN AMENDMENT IS NOT SIGNED BY THAT