5.8. ERMUSR 10-08-2013 - Laserfiche WebLink

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t- .Elk Riv Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Daryl Thompson — Vice Chair Al Nadeau—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 8, 2013 5.8 SUBJECT: Historic Water Tower Update BACKGROUND: At the September Utilities Commission meeting staff was directed to obtain a budgetary quote for the demolition of the historic water tower on Jackson Street. A recent history of Jackson Street water tower discussion is attached for reference. DISCUSSION: The purpose for the request was to determine the minimum amount of ERMU would need to invest into the tower. The discussion at the September Commission meeting was to research whether the expense of the demolition of the water tower would be close to the amount of matching funds needed for a grant to restore the tower. The grant option that the City had explored required a 25% match. The budgetary quotes are as follows: • Full demolition with foundation removal and disposal is $62,500. • Restoration with historic finish is $450,000. The LMCIT/HCA Insurance Appraisal Report for the historic water tower is: • Historic reproduction is $1,020,500. • Replacement is $612,000. If a grant were awarded to restore the tower with a 25% matching requirement, ERMU would need to contribute approximately $112,500. This would result in a $50,000 gap if the cost of full demolition were applied towards restoration. There has been informal discussion on partnering with the City to secure the grant, restore the tower, and then transfer the asset to the City. To do this ERMU and the City would need to discuss how to fund the gap. At a minimum the Utilities Commission should discuss their level °►� POWERED s f3 Page 1 oft /1TVReE Reliable Public Power Pmvider POWERED TO SERVE 77