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Memorandum - Schilling Consultant Services LLC <br />Date: May 18, 2007 <br />To: Ms. Stephanie McNamara, Administrator and Board of Directors <br />Vadnais Lake Area Water Management Organization <br />C: VLAWMO Board of Directors <br />From: Joel G. Schilling, Principal <br />RE: VLAWMO Joint Powers Agreement, Amendment Draft for a Storm Water Utility <br />Attached for your review at the May 24th meeting is an amendment draft to the VLAWMO Joint Powers Agreement (JPA) <br />pertaining to the establishment of a Storm Water Utility (a.k.a. storm sewer utility). The JPA amendment was prepared <br />by Mr. Charles LeFevere, Attorney with Kennedy & Graven, Chartered, a member of our project team. <br />Subdivision 24, paragraph 3) discusses the establishment of a Total Maximum Utility Charges amount for the VLAWMO. <br />Based upon the initial concept effort to look at a VLAWMO utility, we estimated (January 19, 2007 memorandum report) <br />that a single family residential charge of $1.00 /month would generate approximately $392,000 in revenue without a credit <br />system in place. Therefore, we recommend a Total Maximum Utility Charge amount of $450,000 as an adequate amount <br />over the short-term (3 — 5 years) to fund the VLAWMO services without having to go back to its Members to amend the <br />Joint Powers Agreement. <br />We believe the amended JPA provides the necessary authority for the VLAWMO to move forward with conducting the <br />SWU feasibility study and have a system in place for fiscal year 2008. <br />(Z,j, <br />3' � <br />��2 <br />05/21/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 1 <br />