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TO: <br />FROM: <br />DATE: August 8, 1989 <br />SUBJECT: Lift Station #10 Finaiicing <br />8889.4 <br />Mayor and City Council <br />Mark E. Bernhardson, City AdministratoigQyjUQ^ MESTIHQ <br />A(i6141989 <br />CITirOF <br />Attachment: A- Lift Station #10 and 43/Bid Award Memo Excerpt <br />B. Letter to Residents Dated August 2, 1939 <br />C. Proposed Resolution <br />D. Proposed Ordinance Change to Fee Schedule <br />DISCUSSION - As outlined in Attachment A the project and Lift <br />Station #10 is to replace a for e main with a gravity line. This <br />ALTERNATIVES <br />1. Finance with co^nec^i.on charge. <br />2. Finance from opeiations charge. <br />3. Utilization of a combination. <br />PROPOSED MOTION - Moved by , seconded by _, that the Council <br />adopt connection charges as tlie appropriate method long-term for <br />financing this improvement and adopts Ordinance #_, Second <br />Series to amend the fee schedule to include it as a connection <br />charge. Ayes _, Nays _. <br />ISSUE - Determination as to the method of financing for Lift <br />Station #10. <br />INTRODUCTION - At the Council's May 22, 1989 meeting Council <br />directed that a public information meeting be held regarding the <br />connection charge on Lift Station #10 for August 14, 1989. <br />is done in conjunction with Metro Waste Control Commission's <br />project and increases the capacity in the line to accommodate <br />future growth. <br />It is anticipated that this project will be bonded for over 10 <br />years as noted in anocher item on this agenda. A connection <br />charge to solely finance this would be $1,941.62 per hook up. <br />While the notice went to all people n the district, as you will <br />note in Attachment B, it specifically^ said it was only for vacant <br />land that nad not been developed anc was not paying for a sewer <br />monthly charge. While there is no piedictabi1ity as to when the <br />connection charges will be paid it ij anticipated that over the <br />next 10 or 15 years that a total of 8f connection charges will be <br />paid for \n that time. To the extert that it doesn't, the City <br />could use operational funds to mak-• up the difference and that <br />when the bonds are paid off that t'le connection charges could be <br />used to repay the operational fu*.ds. <br />RECOMMENDATION - It is recommended that the connection charge be <br />es tab 1 i ;4he d in ordinance to finance the project through <br />connection charges and that operational funds be used only as a <br />measure to either make up the necessary cash flow to pay off the <br />bonds or that, if appropriate, it be used to make up the desired <br />share.