2.5. ERMUSR 05-20-2014 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams,P.E.—General Manager
John Dietz, Chair
Al Nadeau, Vice Chair
Daryl Thompson, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
May 20, 2014 2.5
SUBJECT:
Agreement Regarding Water and Sewer Access Charges
DISCUSSION:
Last year the City and Utilities staff held discussions regarding developing a Water and Sewer
Access Charge look back agreement which was then adopted by Council. Nature's Dry Cleaning
has requested approval to participate in the program and executed the agreement. The agreement
has now also been approved by City Council.
ACTION REQUESTED:
Staff requests the Commission approve the attached Agreement Regarding Water and Sewer
Access Charges.
ATTACHMENTS:
• Agreement Regarding Water and Sewer Access Charges
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Agreement regarding Water and Sewer Access Charges
This Agreement regarding water and sewer access charges ("Agreement') is entered into
the 2..1 day of A-' i I ,201,3''by and between the MPB LLC("Owner"),the City
of Elk River("City")and Elk River Municipal Utilities("ERMU").
WHEREAS, Owner is the owner of the property located at 927 U.S. Highway 10 in the
City("Property")and proposes to establish a dry cleaner/coin laundry on the Property;and
WHEREAS, pursuant to Section 78-189 of the City Code of Ordinances and ERMU
Policy 5.0 — Water Rules, establishment of the proposed dry cleaner/coin laundry establishment
requires repayment of additional Sewer Availability Charges and Water Connection Fees
("Access Charges");and
WHEREAS,the amount of the Access Charges is determined by reference to the number
of units identified for the proposed dry cleaner/coin laundry in Section 78-189 of the City Code;
and
WHEREAS, Section 78-189(e)(2) of the City Code allows the City Council to adjust the
number of units applicable based on four(4)years experience for the use.
NOW,THEREFORE,the parties agree as follows:
1. Owner will pay the applicable Access Charges, as determined under Section 78-
189(d) of the City Code, for the proposed dry cleaner/coin laundry prior to the issuance of a
building permit to convert the building to this use.
2. If the Owner petitions the City to pay the Access Charges and assess the amount
of the Access Charges to the Property,those assessments will remain payable until paid in full.
3. Owner, City and ERMU will monitor actual water use at the Property for four(4)
years after the dry cleaner/coin laundry is operational and open to the public. If actual average
water and sewer use during the second, third and fourth years is less than the Access Charge
collected or assessed by the City and ERMU, the City will recalculate the units and refund the
difference between Access Charges previously paid by or assessed to the Owner and actual
average water and sewer use during second, third and fourth years. Any refund will be without
interest. If the water and sewer use during the fourth year is greater than the Access Charges
previously paid by or assessed to the Owner as calculated by the table in subsection 78-189 (d),
the Owner will not be obligated to pay additional fees.
4. This Agreement shall be null and void, and there shall be no refund of Access
Charges, whether paid up front or assessed to the Property, if the dry cleaner/coin laundry does
not operate continuously for four(4)years after initially opening.
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MBP LLC
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CITY OF ELK RIVER
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7 J Dietz, ayor
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By (79-
Tina Allard,City Clerk
ELK RIVER MUNICIPAL UTILITIES
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J J. ietz, ( air
By C----- \
Troy Adams,General Manager
682747 DOCX
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