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AGENDA ITEM 7G <br />STAFF ORIGINATOR: John Powell, City Engineer <br />COUNCIL MEETING DATE: September 24, 2001 <br />TOPIC: Resolution No. 01-157, Joint Powers Agreement with Hugo for <br />Water Service. <br />VOTE REQUIRED: 3/5 Vote Required <br />BACKGROUND: <br />The attached agreement allows Lino Lakes to provide water service to the City of <br />Hugo. The agreement includes the following: <br />1. The water service is for residential land uses only. <br />2. The agreement expires four years from its execution. <br />3. Water use is billed at the City's rates plus 10%, in accordance with City <br />policy. Lino Lakes will provide one bill to the City of Hugo; Hugo will bill the <br />individual users. <br />4. The developer will pay for the extension of the water main to the Hugo <br />border. Lino Lakes will pay for 50% of the meter cost. <br />5. The water users in Hugo that are connected to Lino Lakes water are required <br />to adhere to any and all water system related ordinances and policies in <br />place in Lino Lakes. <br />6. The developer will be required to provide financial security for improvements <br />within Lino Lakes consistent with current City policy. <br />The water main extension and meter along Cedar Street will be installed this <br />year. The Victor Gardens project has not yet received final plat approval from <br />the City of Hugo. It is my understanding the water service agreement needs to <br />be in place before Hugo will consider the final plat. <br />OPTIONS: <br />1. Return to staff for further review. <br />2. Adopt Resolution No. 01-157, Approve the Joint Powers Agreement. <br />3. Adopt Resolution No. 01-157 with revisions. <br />RECOMMENDATION: <br />Option No. 2 - Staff recommends that Resolution No. 01-157 be adopted. <br />