08-25-1986 CC MIN - Laserfiche WebLink

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Council Minutes August 25, 1986 Page 2 e Mr. Maurer stated that there would be three pumps in the station; one for normal flow, and a second for peak normal flow, and a third for emergency use needs. Mr. Duitsman expressed his concern with non-looped water systems and related the problem with water in the 5th Street area. Mr. Maurer indicated that as surrounding areas developed a 16" watermain could be looped around. A major issue will be who pays for the watermain. Past experience has shown it to be difficult for property owners to understand why they should be assessed for water when they already have it. Mr. Maurer stated that they could prove benefit to the whole 400 acre area and the cost would only be approximately $200 to $300 per household. The following issues were discussed with comments noted as follows: (1) Utility Department annual payment to the City for the water tower as their participation in the TIF Project and bond repayment. e Mr. Klaers reviewed a letter from the City Attorney, Peter Beck, which states that a $20,000 a year contribution from the Municipal Utilities was a critical issue in the City's decision to go ahead with the $3,000,000 TIF Project. Commissioners Kettner and Duitsman stated that they understood the amount to be a one-time payment of $20,000 and that there is no way the Water Department could generate that kind of revenue every year to support such a project. Mr. Klaers stated that the April 1, 1985, City Council Minutes indicated that the Municipal Utilities agreed to a $20,000 payment to reduce the bond. Mr. Klaers further stated that two project schedules dated March 28, 1985 were available for the April 1, 1985, meeting. One Schedule shows a annual payment of $17,500 by the Municipal Utilities and the second schedule shows annual payments of $25,000. Mr. Klaers further stated that if the expected annual payments from the Utilities were a misunderstanding and would not be made, all monies generated from additional development in the TIF district would be needed for repayment of the bonds. He further explained that there would be no funds left to finance any proposed Industrial Park improvements, as the Council had hoped. Councilmember Gunkel stated that she is aware that there is not a large amount of funds available in the Water Department, but that the July 15, 1985, minutes indicate that the Council was still expecting a $20,000 annual payment because the City authorized to proceed with the Water Tower bond issue. Commissioner Kettner stated that last year the Water Department netted approximately $19,000. He further stated that they would research the possibilities with new developments, and the question of mandatory hookups. (2) Cost incurred for watermain replacement and improvements relating to the Gates Avenue construction. e Mr. Terry Maurer stated that the project in question is actually the East Main project, not Gates Avenue. Mr. Maurer explained that the total costs of the water construction were $32,900 plus overhead of 21.4%, for a final total of $39,952. Mr. Maurer stated that $7,635 was assessed to property owners. Mr. Maurer further stated that past City Council minutes reflect tha~ the Utilities participation would be one half of the water construction cost.