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LAKE ELMO CITY COUNCIL MINUTES JANUARY 21, 1992 2 5. PUBLIC HEARINGS: A. Water Rates - Old Village Mayor Johnson opened up the public hearing at 7:30 p.m. in the City Council chambers. The Public Hearing notice was published in the January 8, 1992 St. Croix Valley Press and affected property owners were notified. City Engineer, Tom Prew, explained the Old Village system was built in 1962 consisting of a well, a pump, a water tank and a distribution system. The City has 243 users, and we bill about 17 million gallons a year. The total cost of production and maintenance is $21,025 a year. He is proposing setting up a water main replacement fund. Annual cost for replacement is $5,876.79. Currently the water rate is $1.00/1,000 gallons plus $5.00 quarter service charge. The service charge is an administrative fee and is not considered water revenue. The average home using approximately 200 gallons/day pays $93.00/year for water. Cost of production and maintenance ($21,025) divided over the 17 million gallons used gives a rate of $1.25/1,000 gallons. The largest part of this water rate increase will be in the creation of a watermain replacement fund. In order to cover all the costs of operating this water system, Prew recommended that the new water rate be $1.25/1,000 gallons, that a new $6.00/Quarter watermain replacement fee be added, and that the current $5.00/Quarter service charge remain the same. There was no one to speak for or against the increase in water rates. Mayor Johnson closed the public hearing at 7:35 p .m. The Council agreed to $1.25 per thousand (1,000) gallons of water used, with a minimum usage charge of $7.50 per quarter, plus a $5.00 service charge per quarter for each user, plus a $6.00 water main replacement fee per quarter for each user. M/S/P Williams/Hunt - to adopt Resolution No. 92-1, as amended (minimum usage charge was changed from $11 to $7.50 per quarter for each user), establishing water service rates from January 1, 1992 for the "Old Village" water system. (Motion carried 5-0). B. Water Rates - Lake Jane Mayor Johnson opened up the public hearing at 8:00 p.m. in the City Council chambers. The Public Hearing notice was published in the January 8, 1992 St. Croix Valley Press and affected property owners were notified.