05/15/1969 Council Minutes - Laserfiche WebLink

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1 165 into same. This would possibly mean an aeration unit for the sewage system and a self - contained tank for water. The rates charged to users would be somewhat higher than those for users on a municipal system because the developer must pay income tax and property tax on his lines. At an estimated cost of $500,000 for the line to run from County Road J to Lakes Addn. #1, with a valuation of $1 million, we would have to bond at 1/2 of our valuation. Mr. Gotwald stated that his objections to the proposed franchise had been covered by Mr. Busch's letter. The plans will have to be inspected when drawn and also approved by the Minn. Pollution Control Agency. The $500,000 would be es- timated for a line to run from Seventh Avenue to County Road J, and could be ex- pected to be a low estimate as costs are rising. Mr. Busch took the floor, mentioning the previous meetings, etc., stating that the proposed franchises were nearly parallel, with a difference of fire protection mentioned in the water franchise and the necessary approval by the Pollution Agency in the sewer franchise. He then proceeded to outline the changes to be made in the franchises. art. I. Mentioned that Exh. A was not yet available as they did not have the complete legal description of all the property to be included in the whole devel- opment. However, he stressed that all of the area to be included in the franchise agreement would be purchased by U. S. Lakes Development -- none of it would be property on option. The definition of 'public places' was asked by Mr. L'Allier. Mr. Busch stated that this would be a logical place for pipes to run other than in the Village's streets or alleys in the case of surface drainage, etc, when a line might be run through a park, for example. In any case it would be subject to the Council's approval. Art. Ii. There was much discussion on the approval of plans, both by the Council and the Pollution Control Agency. Mr. Busch stated that this had to be done on a step -by -step basis, with approval by both on each step. This is the way all such engineering projects are done. They don't care to risk their funds on an expensive overall design only to have it rejected. Mr. Jensen stated that they wouldn't receive written approval until the last stage of the project is provided. If any stage was not approved, they would have to revise it. Mr. Gotwald concureed in':thetstep -by -step proceedure. Mr. Bohjanen queried the word various under the third 'whereas' on page 1 of the agreement since there were only two franchises. Art. III Mr. Busch stated that the word exclusive was necessary as it would raise havoc to have competing sewage and water companies in the same area. Art. IV. Mr. L'Allier asked whether any stock in the company would be sold to the public. No, because they wouldn't want the public to gain control of a utility; this could affect the rates. The Village retains complete approval of the rates or else it goes to an arbitration board. (See No. 4.) in the Busch letter for changes to be made.) This in eluded a definition of a reasonable rate of return and that there would be no extra compensation to employees to raise the costs in order to increase the rates. It was stressed that after the denial of a request for a change in rates, it would be one year before another request .could be made. Changes in the class of certain users would affect their rates.