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6.4. SR 07-18-2011REQUEST FOR ACTION To Item Number Ma or and Ci Council 6.4. Agenda Section Meeting Date Prepared by Administration ul 18, 2011 ustin Femrite, Ci En ~ eer Item Description Reviewed by Approve Trunk Utility Funding of Elk River Municipal Utilities' Tim Simon, Finance Director Well 9 Raw Water Improvements Reviewed by Bob Thistle, Inte ' ~ty Administrator Action Requested Approve Elk River Municipal Utilities' (ERMU) request to fund the trunk water system modifications associated with Well 9 Raw Watermain in the amount of approximately $284,568.06 from the Trunk Utility Fund. Background/Discussion The Elk River Municipal Utilities' has made written request of the City of Elk River to allow the use of trunk water main funds for the project costs associated with the Well 9 Raw Watermain Improvements. The City has previously funded the Eagle's Marsh, County Road 40 trunk water main, and the 19314 Avenue projects for ERMU out of the Trunk Utility Fund. Staff has reviewed the request in accordance with the Trunk Utility Fund Policy that was developed in August of 2008. Staff finds the request in accordance with that policy and supports the request made for the funding of this project. Financial Impact The balance in the Eastern Area trunk water fund as of December 31, 2010, was $303,638. Elk River Municipal Utilities' request will reduce the current balance to approximately $19,069.94. Income over the next four years will bring the balance of the fund back up to $579,000. Attachments ^ Elk River Municipal Utilities written request to use trunk water funds Action Motion by Second by Vote Follow Up N:\Public Bodies\City Council\Council RCA\Agenda Packet\07-18-2011\trunk%20water%20fee%20staff%20memo%207-18-11[1].docx Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763.441.8099 The City of Elk River July 13, 2011 Attn: Mr. Robert Thistle -City Administrator 13065 Orono Parkway Elk River, MN 55330 Subject: Elk River Municipal Utilities' Approval Request for Trunk Utilities Funding of the Well #9 Watermain Improvements Project. Mr. Thistle, Per action of the Utilities Commission on July 12, 2011, Elk River Municipal Utilities requests the Council to approve funding of the Well #9 watermain improvements project in the amount of $284,568.06 from the Trunk Utility Fund. The Well #9 watermain improvements project will add over 2600 additional feet of watermain on the east side of Elk River in the vicinity of Twin Lakes Road and Twin Lakes Parkway. This watermain improvement will route the output from Well #9 located on Twin Lakes Parkway to the filter plant at Well #7 located on Twin Lakes Road. This project will also re-route the output from Well #8 located off Twin Lakes Road to connect into the water distribution system at Twin Lakes Road. The completion of this project will improve the Utilities' ability to utilize Well #9 more effectively by allowing it to function year round. Currently this well is utilized as a peaking well. The watermain additions of this project are in accordance with the City's Trunk Utility Fund policy and this request has been reviewed with the City Engineer and City Financial Director. This project has been approved by the Utilities Commission contingent upon City Council approval of the use of trunk funds. Best Regards: •~ Troy Adams, P.E. Utilities Director Cc: David Berg -Water Superintendent Justin Femrite, P.E. -City Engineer Tim Simon -City Financial Director File