07/08/1996 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES July 8,1996 July 8, 1996 (Check No. 44873-44944, $341,034.16) Approved June 27, 1996 Centennial Fire District Approved Council Member Kuether made a motion to delay the June 30, 1996, Disbursement until the next meeting. Mr. Schumacher will investigate the Disbursement and prepare a report for the Council. The motion was seconded by Council Member Bergeson. Motion carried unanimously. Mayor Landers reminded the group of the guidelines for audience participation in City Council meetings, emphasizing the need for respectful dialog. OPEN MIKE Senior Housing Sewer and Water Rates, Terry Schmidt - Mr. Terry Schmidt of Homestead Cottages, developer of the senior cottages, came forward to discuss the sewer and water rates charged by the City to each of the units in the senior cottages. He referred to a handout that was passed out to the Council Members that reviewed sewer and water rates. Mr. Schmidt put together 1994 a comparison of user sewer and water rates from several other cities. He stated that the buyer of tax credits would not close until something is done to lower the sewer and water rates or increase the rent. Mr. Schmidt indicated that he had sent information to Mr. Schumacher. He stated some sort of deal must be made. The study indicated the rates should total approximately $5,500 per year. The City of Lino Lakes is three (3) times that rate. He stated that Mr. Mike Saxon had worked with Lino Lakes before on many projects. Mr. Saxon was removed and Mr. Schmidt is now the sole owner. He stated he has 41 unites leased or rented. Mr. Schmidt reviewed the handout and asked the Council if he and the City could work together for this first year and determine a lower user rate. If this cannot happen, there would be a $16.85 per month rent increase. Mr. Schmidt passed out a copy of the sewer and water bill he just received. The bill was for $3,725 or $14,800 annually. Council Member Neal asked if this was the first sewer and water bill received. Mr. Schmidt indicated it was not his first bill. He stated the first bill was also high. He indicated he spoke to Ms. Vaske who stated she would speak to Mr. Schumacher. Council Member Lyden stated that the sewer and water rates are a concern of the City. However, homework to finance the project is the responsibility of Homestead Cottages. He asked if he could live with a bill of $8,000 to $9,000. 2