02-08-2012 City Council Minutes - Laserfiche WebLink

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MR City Council Minutes February 8, 2012 Page 6 of 9 COUNCIL MEMBER SJOBLAD MOVED TO AUTHORIZE THE ASSIGNMENT OF $205,000 FROM THE 2011 GENERAL FUND BALANCE TO THE ROADS AND STREET CAPITAL OUTLAY CARRYOVER FUND FOR THE CONSTRUCTION OF GOVERNMENT DRIVE. COUNCIL MEMBER MALECHA SECONDED THE MOTION. MOTION CARRIED 5 -0. 9.2. Consider Utility Rate Study Proposals The Clerk noted that she received three proposals for a Utility rate study. The proposals ranged from $6,000 to $12,000. Council Member Ryan stated that the rate study that was completed in 2007 is still in effect and that the water and sewer funds are moving in the right direction. Council Member Ryan stated that there is no need to spend money to do another study especially while the existing rate study is working The Mayor noted that the EDC has been requesting a WAC /SAC policy. Council Member Ryan stated that he does not feel water and sewer funds `,. should be used to fund economic development. Business development agreements are usually negotiated and WAC /SAC fees can be negotiated at that time. Discussion was held regarding what happens if an apartment building wants to hook up. Council Member Ryan stated that at this time, one hook up fee would probably have to be charged, but he stated he is not certain that this would be a solid answer to the question. There was a general consensus of the City Council to not move forward with a utility rate study at this time. Council Member Ryan stated that Mike Loven should look at the actual language in the WAC /SAC policy and see how we address some situations such as apartments, retail and, commercial hook ups compared to residential hook ups. Council Member Ryan stated that the EDC should be informed that the City can be flexible on WAC and SAC fees. Council Member Sjoblad suggested that the EDC be clearer on what it exactly is expecting from the Council.