08-25-1986 CC MIN - Laserfiche WebLink

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Council Minutes August 25, 1986 Page 3 e Discussion was carried on regarding the ineligibility for use of MSA funds for water construction improvements in this project. Further discussion was carried on regarding determination of overhead costs. Commissioner Duitsman commented that since most of the watermain project proposed ended up not being necessary, and the fact that no assessment was levied to the Utilities, he assumed the Utilites contribution would not be necessary. He further commented that he assumed some of the City's decretionary MSA funds could be used to cover the shortfall. Councilmember Gunkel stated that the City Council had previously decided not to use any discretionary funds for the water project. Discussion was carried on regarding who would benifit from the Utilities contribution. Lori Johnson, Finance Director, stated that it would reduce the debt service and result in a lower levy in the future. The members of the Municipal Utilities expressed their willingness to pay half of the water construction costs. Both the Utilities Commission and City Council agreed that figure to be used would be the $39,900 figure (before assessments). (3) Maintenance of hydrant fee charged to City - e Patrick Klaers, City Administrator stated that the City is currently being charged a monthly hydrant maintenance charge for 164 hydrants at $3 per hydrant, for a total cost of approximately $5,900 per year. He stated that in 1982 the fee was raised from $2 to $3 per hydrant. Mr. Klaers explained to members of the Utilities Commission that the City would like some clarification as to what this charge is for and how it was determined. Russ Anderson, Fire Chief, questioned whether or not this fee was for changing the old fittings on the hydrants to accomodate the fire hoses. He noted that there are approximately 80 hydrants still to be changed and therefore, they must use an adapter to hook up the hoses. Mr. Anderson further noted that if the fee included cleaning out hydrants in the winter, this was not being done. He stated that often the hydrants cannot be found very easily and the Boy Scouts have shoveled out hydrants to help them. He further stated that flags have been placed on some hydrants in areas known to drift bad, but that only a few are flagged and children often remove them. Commissioners Duitsman and Kettner indicated that they would research this issue and have the Utilities Superintendent contact the City with an answer. (4) Payment in lieu of taxes paid to the City - e Commissioner Duitsman explained that the fee was originally based on a percentage of profits and later became a set amount of $1,000 per :monfh He further explained that prior to him serving on the Utilities Commission, the payment was dropped, but that former Mayor Frank Madsen requested that the payment be reinstated and back payments were made, to help the City with shortfunding.