01-23-2002 Council Agenda - Laserfiche WebLink

Home Browse Search

`(J+ 6/ „ Ye G Ie `ia%2ack 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www. ei.lit Ile-Canada. mn. us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 18, 2002 RE: Schroeder Milk Agreement MAYOR Michael 1. Fahey COUNCIL Beverly Sealze Jim LaValle Matt Anderson Rick Montour ADMINISTRATOR Joel R. Hanson Attached is a proposed agreement with Schroeder Milk for their connection to our municipal water system. They are proposing to connect a portion of their property (one existing and one new building — see exhibit "C" of the agreement) for fire suppression purposes. Their other existing building will have service from Roseville. Their domestic water supply usage will come from a new well they are constructing. As you may recall, we contemplated a similar agreement back in the early 1990's. However, Schroeder Milk decided against a Little Canada connection due to the amount of our connection fee ($108,425 at that time) and the availability of an adequate supply from Roseville, (It should be noted that Roseville can not provide an adequate supply for the expansion of the system and the cost to use the well they are building would be higher than our connection fee.) In arriving at the proposed fee, I used the report prepared Bob Voto in 1990 (See the last page of Exhibit C). I used the full value development estimate and divided it by two given approximately one -half of the property is served by Roseville. This yielded a fee of $79,683.50. The fee I am proposing now is lower than that discussed in 1990 due to the lower value allocated with the Phase II building and less SAC units (part of the formula) associated with the second phase (152 versus 30). It should also be noted that had I used the current values, the fee would have been substantially higher thereby creating the incentive for them to use their well for this purpose. Therefore, I felt my approach was reasonable in terms of the City's best interests. My recommendation is you approve the agreement as presented, subject to any comments of the City Attorney.