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?IINO'PES <br />CITY COUNCIL <br />FEBRUARY 9, 1994 <br />premiums for all property owners. <br />Hanson asked if there would ever be enough reserves in <br />the water fund to offset the cost of expensive water <br />main projects. <br />The City Administrator pointed out that he is <br />recommending the Water & Sewer Capital Reserve Account <br />as a source of funding for these water main projects. <br />Current utility users are supporting this fund. The <br />Administrator pointed out that the City recently held <br />an improvement hearing to consider water main for <br />Viking Drive. Estimated cost of that improvement was <br />$11,000 per lot. The Administrator pointed out that <br />the City can only assess amounts equal to the benefits <br />received from the project. <br />The Administrator reported that he met with the County <br />today, and was informed that the Keller Parkway road <br />improvement is not likely to happen until 1995. <br />Installing water main at the same time the road is <br />being reconstructed would result in $100,000 in project <br />cost savings. <br />The Administrator commented that every area in the City <br />could eventually be served with water main, but not <br />necessarily from Little Canada. The Administrator <br />pointed out areas such as Beam Avenue may be better <br />served through Maplewood, while others through Vadnais <br />Heights. <br />Morelan pointed out that utility and cable TV service <br />is provided on single-frontage streets without <br />additional cost to the property owners. Additional <br />cost to provide these services on a single-frontage <br />street are subsidized system-wide, and this is the only <br />way to complete these types of systems. <br />Hanson pointed out Morelan's previous comments that <br />property owners on single-frontage streets should not <br />pay less for water main than others in the City have. <br />Hanson felt that reserve funds were the logical source <br />to subsidize single-frontage water main projects. <br />The Administrator pointed out that a single-frontage <br />water main policy will provide the City with a plan for <br />addressing these projects as they are proposed. The <br />Administrator also suggested that the time to propose <br />water main improvements in some areas is when the <br />streets need reconstruction. <br />Morelan pointed out that the City has been petitioned <br />Page 4 <br />