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LAKE ELMO CITY COUNCIL MINUTES APRIL 3, 1990 PAGE 3 Kelly Brockman, 3385 Lake Elmo Avenue, indicated when you are ' comparing sewer rates with areas that are sewered, there are several, expenses that are not included in those figures. There is the pumping charge to have their tanks pumped and the possibility of replacing their pumping station. Mr. Brockman will receive a copy of Larry Bohrer's letter of March 30, 1.990. Mayor Dunn noted the Council received a letter from Michael Severin, 8012. 50th St. N., requesting the City take a good .look at the fairness of the current user fee for people on off -site systems like his. A Council member suggested a letter be written to M. Severin and P. Scovill clarifying what the city's obligations are and why they are being charged this fee. Councilman Williams explained he felt the rates are reasonable in light of our documented expenses, the rates would be reviewed every year and be lowered if the fund shows a positive balance of appropriate size. Mayor Dunn indicated consideration should be givento the people with the lesser water usage. Councilman Graves stated he understood and totally supported the need for the fund to be self-sustaining. His concern was trying to make a cost projection line with only two data points and causing a 50% increase in annual charges. Therefore, he would not be in favor of endorsing the proposed charges. He would like to keep the current user rate structure because this was based on Bohrer's engineering expertise. If there is unusual expenses, the General Fund can pay for them, but he did riot want the General Fund to have to subsidize it on a continuous basis. If after three years you see that the initial assumptions were erroneous, then the council can make the corrections. Councilman Hunt indicated they are only talking about an additional $15 a quarter, but understood for someone on a fixed income this can be alot of money. Hunt added, the Council has an obligation to the City to maintain a proper balance for replacement fund. He would support the current rate structure given by he City Engineer because he is using his expertise to make that suggestion. Councilwoman Armstrong pointed out that even though the first year was unusual, one repair could significantly affect the fund. For that reason, she would like to see this stabilized before cutting back. M/S/P Williams/Hunt - to approve the 1990 rate structure increase for 201 systems from $120 per year to $180 per year for each ERU, except the two individual off -site systems which require minimal maintenance, as recommended by Larry Bohrer in his letter of March 15, 1.990. (Motion carried 3-2: Dunn: She would like to give more consideration to the people with the lesser water usage and to make sure this is revisited next year to see about other adjustments; Graves: For the reasons he already stated).