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5.1. SR 04-19-1993 ITEM 5. 1. TO: MAYOR & CITY COUNCIL FROM: PAT KLAERS, CITY ADMINISTRATOR DATE: APRIL 16, 1993 SUBJECT: UTILITIES COMMISSION RECOMMENDATION I have made contact with Utilities Superintendent, Bill Birrenkott, to request his attendance at this City Council meeting in order to have a presentation on the Utilities Commission recommendation regarding water department finances for future towers and wells. Bill indicated to me that he and/or a Utilities Commission member would be in attendance at this meeting to discuss the recommendation that came from the Utilities Commission 4/6/93 meeting. Attached for your review are the draft minutes from this meeting. . If the City Council accepts the Utilities Commission recommendation, and authorizes, through the adoption of an ordinance, a Water Impact Fee (WIF) on future single family residential developments, then this fee should be made known at this April 19, 1993, meeting. The reason for this recommendation for a new fee being made known at this 4/19/93 meeting, is due to the Council considering a number of preliminary plats on 4/19. It is important that this WIF discussion take place before the City Council approves any preliminary plats so that developers are put on notice that they may have an additional financial commitment to the water utility. A joint meeting with the Utilities Commission and the City Council on 5/3/93 has been requested to consider the Utilities Commission recommendation and to continue discussion on the finances of water towers and wells. . 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 --/ ~\ / '" . . 4) 6) . *~IV \.' ilAPR 12 1991 ELK RIVER lVIUNICIPf\L UTILITIES DRAFT 3:: King .\\enu~ Elk River. .\Iinnesota 553.30 Phone If'i i:) .4 i -20:0 UTILITIES COMMISSION MINUTES April 6, 1993 3:00 P.M. Present Were: James Tralle James Simpson George Zabee President Vice Chairman Trustee Others present: Bill Birrenkott Glenn Sundeen Don Heinzman Terry Maurer Pat Klaers General Manager Line Superintendent Elk River Star News Maier Stewart & Assoc City Administrator 1) 2) The meeting was called to order at 3:00 P.M. by President Tralle. Motion by Mr. Simpson seconded by Mr. Zabee to approve the agenda. The motion carried. 3) Motion by. Mr. Simpson seconded by Mr. Zabee to approve the minutes of the previous meeting as distributed. The motion carried. . The General Manager presented the Commissioners with several scenarios to finance future tower expansion and wells for the water department. The variables which were discussed were the Water Connection Fee, the percentage of rate generated cash to be applied to tower and well construction, impact fees, and length of loan financing. Pat Klaers presented a case in which the there would be no "impact fees" which was discussed to some degree. Motion by Mr. Simpson, seconded by Mr. Zabee, to request the City Council to pass an ordinance requiring an "impact fee" to developers of $300.00 per residential lot to be assessed at time of lot closing. The motion carried unanimously. The Commissioners also agreed that the Utilities Commission would, at future dates, raise the Water Connection Fee 5% per year until a fee of $1,200 is reached. The Commissioners also agreed that a philosophy of applying 20% of rate generated cash would be used to fund future tower and well improvments. The Commissioners also agreed that all bonds to be issued would carry a term of 30 years with a "call priviledge". 5) Glenn Sundeen presented the Commissioners with a suggested change to the Safety Manual.' Motion by Mr. Simpson, seconded by Mr. Zabee, to incorpoFate the suggested change to be attached to 'and become a part of these minutes. The Motion carried. Developer fees for underground residential developments were discussed. Motion by Mr. Simpson, seconded by Mr. Zabee, to charge developers for underground electricity to lot corners $320.00 for lots with sewer and water and $420.00 for lots without sewer and water. The Motion carried. The Commissioners also instructed staff to review these charges annually. Elk River Area Crop Walk 1993 . SUDDorted by: the Community Hunger Appeal of Church Wond Service 5,;2, Elk River Ministerial Assoc. CAER Board of Directors April 25, 1993 Committee Members: Carolyn Comelius United Methodist Lou Fountain Emmanuel Lutheran Mayor Hank Duitsman City Hall 720 Dodge Ave. NW Elk River, MN 55330 Dear Hank: As you already know from talking with Rev. Trish Greeves, Union Church, Elk River is having their first annual Elk River Area CROP Walk on Sunday, April 25. The walk will start and end at CAER Food Shelves, whereby a designated route has been laid out totaling approximately three miles. In addition, 25% of the proceeds collected by sponsors will be donated to CAER. For this endeavor we have received a tremendous amount of support from local businesses, the Elk River School District, the Scouts, Churches, and many other organizations throughout the area. D~kHoft~d Therefore, on behalf of the CROP Walk Steering Central Lutheran Committee and the community of Elk River at large, . ' I would like to formally invite you to participate ~~&Ma~/eMacta~~~n the opening ceremonies as the grand Marshall, Chnst Lutheran proclaiming Sunday, April 25 as CROP Walk Day for the greater Elk River Area. . Trish Greeves Union Church Dan & Diane Narr Union Church Cindy Olson Union Church Greg Pagh Christ Lutheran Jill Pouliot Central Luthera Mary Ann Rick United Methodist Sue Rondeau Central Lutheran . Contact: Dan Narr 441-0818 Since CROP is new to this area, and many people are not familiar with what CROP is all about, I have enclosed some additional information for your perusal. Should you or anyone else on the City Council have any questions and/or concerns, please feel free to give me a call. My phone number is 441-0818. I look forward to talking with you soon. Steering Committee ~1QJfr{i U/"41 l ,~ ':.~ \, ,I,' We walk because they waik