12-08-1998 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission December 8, 1998 5.5 Up-date on Eastern Area Project Pat Klaers, City Administrator and Lori Johnson, Assistant City Administrator appeared to discuss the Project with the Commission. Pat Klaers discussed his memo to the Mayor and City Council, as well as the funding of the project and the bid results. Pat Klaers asked for a Utility commitment in the form of a motion stating the limit the Water Utility will fund the $800,000.00 shortfall. The possibility of using TIF monies to fund the Water and Electric shortfalls was also discussed. Further discussion followed, with Bryan Adams commenting that the Electric is a large part of the Eastern Area Development, which also contains a large shortfall, and he does not feel that it has been addressed. The Elk River Utilities Commission will consider action in January, 1999 on the amount the Water Utility will fund the shortfall. 5.2 Review and adopt NSF Check Policy Present policy dictates that bills are due on the 15`h of each month. Any account not paid at that time receives a penalty. Occasionally a payment due on the 15`h will be paid with a check that becomes NSF. James Tralle moved to adopt a policy stated: Any check marked NSF (non- sufficient funds) that has not been resolved by the due date, given in payment for services due on the 15th of the month, shall be imposed a $20.00 charge, and assessed the penalty of 10%. 5.3 Up-date proposed Gas Turbine Project Bryan Adams up-dated the Commission on the progress of the Gas Turbine Project. The site survey is being completed, a financial analysis is in progress by UPA and Springsted is running different payment schedules based upon different assumptions. It is recommended that the Utilities use a designated financial and legal team. Commission and Staff continued discussion of the project with several scenarios discussed.