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LAKE ELMO CITY COUNCIL MINUTES NOVEMBER 19, 1991 3 M/S/P Mayor Johnson/Dick Johnson - to direct the City Administrator to draft a letter indicating the city already has identified failing septic systems and are soliciting information from residents, business owners North of the tracks and South of Hwy 5 as to whether there are other septic system problems.After the response is received, the City will address it. (Motion carried 5-0). B. 201 Users Fee, Resolution No 91-37 Tom Prew reported each year we review the 201 System account and recommend adjustments to the User Charge. The User Fee system has been in place four years now. The goal has been to increase the fund balance $360 each year to cover replacement of the pumps and controls for the lift stations. At this time, the City Engineer recommended no increase in the 201 User Fees because our positive balance should cover any unexpected expenses that could occur. M/S/P Williams/Hunt - to adopt Resolution No. 91-37 adopting the 1992 rate structure for 201 systems in the City of Lake Elmo. (Motion carried 5-0). C. Water Rates: Old Village & Lake Jane Set date for Public Hearing Lake Jane Area: City Engineer Tom Prew recommended establishing the water rate for the Lake Jane area at $1.25/1,000 gallons, plus a $5 quarter service charge, and raising the rate in 1994 to $1.50/1,000 gallons. In our agreement with Washington County, they gave the City $25,000 to help pay for operation, maintenance and depreciation of the new system. It was proposed to use the $25,000 to help phase in the water rates to the new users. Both water rates are contingent upon the price of water from Oakdale remaining at $1.00/1,000 gallons. Mike Bouthilet, city maintenance employee, inquired if Oakdale will give us a cost break on metered water that is used to flush the system. When the Old Village system is flushed or when we permit tapping of water, we make them pay basically what it costs to run a pump and do not charge $1.00/1,000 gallons. The City Engineer will check if the flushing of water lines was taken into account and calculated into the $1.53/1,000 gallon of the original contract with the Counties. Old Village Area: Tom Prew reported the water rate in the Old Village are is $1.00/1,000 gallons and this rate is less than the amount necessary to supply the water. Prew recommended the Old Village water rate be set at $1.25/1,000 gallons, plus a $5/quarter service charge, plus a $5/quarter improvement charge.