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December 12, 1977 Page 5 Councilmember Baumgartner suggested that Mr. Bayer contact the adjacent property owners since they had at one time expressed a desire to purchase the strip of land, and a decision should be made before the plat is drawn up. Attorney Meyers stated that he felt it would work out best if the land was deeded back to the City and the City be responsible for it, or that it could be sold to one of the adjacent property owners. MSP (Pickar - Ziebarth) to approve the minor subdivision request of Cedar Bay Builders by creating a third lot of 16.5' x 322', by extending the north /south lot line to the north extremity of the plat, contingent upon the third lot created being deeded either to one of the property owners adjacent or to the City, for the final approval of the City. 4 ayes 1 nay Councilmember Baumgartner stated that he had voted against the motion as the City had gotten itself out of real estate by getting rid or the property and did not feel that they should be taking it back. Mayor Pickar replied that he does not anticipate that the City will get the land back. UTILITY RATES FOR WATER AND SEWER Administrator Achen reported that the City last raised the sewer and water rates in 1973, with the raise taking effect in 1974. The proposed rate increase would take effect the beginning of 1978 and while the increase would be 23.9 %, it would be 10% less than the increase in the cost of living during the same period of time. The first bill the citizens would receive under the new rate structure would be sent out in April of 1978 and would cover service for the first three months of 1978. Russell Paul stated that he felt the increase was too high and would like to see it trimmed. Administrator Achen replied that the average family in Mounds View uses $12 of services per quarter now, while that cost is expected to be $19 per quarter by 1980 and that the City feels the best way to make the change would be to put the increase into effect now to work against the deficit. Mayor Pickar stated that he agreed it was a large increase but that it was necessary in order to pay the Metro Waste Commission, who bills the City. Administrator Achen stated that there would not be an increase in cost to anyone who uses less than 40,000 gallons per year, which is the group that senior citizens usually fit into. MSP Ziebarth- Hodges) to approve Resolution #877 for utility rates for water and sewer. 5 ayes WATER SYSTEM STUDY - CONSULTANT SELECTION Engineer Hubbard reported that six companies submitted proposals for the water system study to the City. Engineer Hubbard stated that after reviewing the proposals, he felt Consulting Engineers Diversified was best suited to do the work.