06-29-1992 CC MIN - JOINT - Laserfiche WebLink

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Elk River City Council Minutes June 29, 1992 Page 2 . development of the area, a new well and a minimum of a one-half million gallon water tower needs to be constructed in that site. Discussion was held as to whether or not it was appropriate to have taxpayers pay for the utilities in this area. Possible financing methods of the improvements were discussed. Some suggested financing methods included payment by the developers, an area-wide assessment policy which would assess old and new development in the area, City contributions, increase in water connection fees, a possible two tier water rate structure, and an assessment for the entire City (for water that is used as fire protection). The Council discussed the differences between the western area water tower and the Jackson Avenue water tower. It was indicated that the Municipal Utilities will be paying for the wells in the western area. Discussion was held regarding whether the Utilities had previously agreed to pay for one well or all three wells. Terry Maurer indicated that three wells will be needed eventually in the area and it was the City's understanding that the utilities committed to paying for all three wells. The total cost for the wells (and treatment) was estimated at one million dollars in 1989 when this was discussed by the Utilities Commission. Commission members recalled this amount being discussed. . The City Administrator stated that the City also has RDF TIF money that has been designated for expansion of the utilities in the western area. He indicated that this money may be used for the water tower in the western area. The City Council is currently evaluating now to spend these funds. The City Administrator indicated that the City and Utilities will also have to look at other methods of financing the western area water tower. It was the consensus of the Council that the City's assessment policy be revised to more clearly state that water tower assessments for commercial property be assessed more than residential property. The Council directed City staff to begin working on a method to finance the one-half million dollar water tower and well near Highway 169 and Jackson. 4.2. Electric Utility Update Bill Birrenkott explained that the Elk River Municipal Utilities have reached an equitable solution regarding the Anoka Utilities territory acquisition. He indicated that the Elk River Municipal Utilities plan on beginning the actual assumption of some of the Anoka Electric Cooperative properties on August 1, 1992. He further stated that the entire process will take up to six years and could cost the Municipal utilities between $1,500,000 and $2,000,000. . Bill Birrenkott indicated that the Elk River Municipal Utilities are in the process of creating a new substation on the site of the present west substation in order to bring in more power to serve future loads and back up existing loads.