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AGENDA ITEM 7E <br />• STAFF ORIGINATOR: John Powell, City Engineer <br />COUNCIL MEETING DATE: February 11, 2002 <br />TOPIC: Resolution No. 02 -15, Revised Joint Powers Agreement with Hugo for <br />Water Service. <br />• <br />• <br />VOTE REQUIRED: 3/5 Vote Required <br />BACKGROUND: <br />The City Council discussed and approved a Joint Powers Agreement (JPA) for water <br />service with the City of Hugo at the September 24, 2001, City Council meeting. The City <br />of Hugo requested that the term of the agreement, as stated in Article IV, Item G, be <br />extended from 48 to 54 months. Staff has no objection to this change. The other key <br />components of the agreement remain unchanged: <br />1. The water service is for residential land uses only. <br />2. Water use is billed at the City's rates plus 10 %, in accordance with City policy. Lino <br />Lakes will provide one bill to the City of Hugo; Hugo will bill the individual users. <br />3. The developer will pay for the extension of the water main to the Hugo border. Lino <br />Lakes will pay for 50% of the meter cost. <br />4. The water users in Hugo that are connected to Lino Lakes water are required to adhere <br />to any and all water system related ordinances and policies in place in Lino Lakes. <br />5. The developer will be required to provide financial security for improvements within <br />Lino Lakes consistent with current City policy. <br />The City of Hugo has approved the attached agreement. The water main extension and <br />meter along Cedar Street will be installed this year. After a great deal of grading activity <br />in the fall of 2001, the Victor Gardens project was slowed due to floodplain definition <br />issues. These issues have now been resolved. The project will resume when site <br />conditions allow. <br />OPTIONS: <br />1. Return to staff for further review. <br />2. Adopt Resolution No. 02 -15, Approve the Joint Powers Agreement. <br />3. Adopt Resolution No. 02 -15 with revisions. <br />RECOM ENDATION: <br />Option No. 2 - Staff recommends that Resolution No. 02 -15 be adopted. <br />