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LAKE ELMO CITY COUNCIL MINUTES JANUARY 21, 1992 3 Tom Prew reported there will be 83 users on this system with an estimated 8.3 million gallons per year being billed. We will be buying the water from Oakdale who charges us $0.79 per 1,000 for the water. Lake Elmo will flush and repair the system at an estimate of $1,500 per year. Replacement cost for this watermain system over a 100 year life would necessitate a charge of $1.35 per 1000 gallons. Through negotiations with Washington County when the system was being proposed, $25,000 was negotiated to offset the cost to the residents of the city water versus their well water. We can collect interest on the $25,000 and use that to offset the water rates and propose to charge $1.15 per 1000 gallons, plus the $5 per quarter service charge. The average annual cost for a Lake Jane area water system user would be $120 per year. Dick Quinn, 8929 36th St., explained Oakdale is charging $0.79 to their own residents and we (Lake Elmo) are not getting any break at all. What about Oakdale billing us directly as they do their own customers saving $0.36 per 1,000. Then the $0.36 for our city's administrative costs could be eliminated. Tim Zilles, 8890 36th St., read an article in the St. Paul paper about the EPA is negotiating with the two counties over landfill on -going charges of appox $2.4 million. Could this water charge be construed as on -going? Councilman Hunt explained the counties were not required to put in the water system. To meet the requirements set out by the Minnesota EPA and PCA all they would have to do is install carbon filters in about 4 or 5 homes. The Counties elected to put the water system in the entire area (both developed and undeveloped) at an expense far greater than what they would have had to bear. The City entered into this agreement that would allow the water system to go in very quickly. According to the MPCA there is no longer a problem for the homeowners because now they have safe water. Councilman Johnson noted the article discussed a responsible party search and it would behoove the City to follow up on this. This may be a possible way to get the landfill cleaned up. Mayor Johnson closed the public hearing at 8:18 p.m. Councilman Williams suggested a watermain replacement fee rather than incorporate this water main replacement fee into $1.15 per 1,000 gallon fee as we did in the old Village because he liked the idea of a dedicated fund for water main replacement. The City Administrator has not heard from Oakdale regarding her inquiry about the $162 bill the City received for Oakdale's water rates of $2.00 per unit per month and $0.79 per 1,000 gallons.