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<br />Item No: 7F <br />Meeting Date: January 3, 2017 <br />Type of Business: Council Business <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: James Ericson, City Administrator <br />Item Title/Subject: Resolution 8692, a Resolution Approving a Utility Agreement <br />with the City of Blaine <br /> <br />Introduction: <br /> <br />The City of Mounds View provides water and sanitary services to most residents within the <br />community except in two areas where the City of Fridley and the City of Blaine are the <br />providers. These properties are in areas where it would not be economically feasible to <br />extend Mounds View water and sewer mains. With regard to the City of Blaine, because <br />our mains do not extend west on County Road J (85th Avenue) beyond Spring Lake Road, <br />the City of Blaine provides the services. Five lots on County Road J are affected. <br /> <br />Discussion: <br /> <br />A new home is being constructed on a vacant lot at 3016 County Road J. Mounds View <br />staff has been communicating with Blaine staff concerning the utility connections and the <br />appropriate fees. The property owner of 3016 County Road J produced an agreement <br />between the two cities dated 1971 which specifically outlined the costs of the utility <br />connections. The agreement furthermore indicated that the per-foot fees for the sewer and <br />water laterals and the unit charge as outlined in the 1971 agreement would not increase. <br />Neither Mounds View nor Blaine can confirm whether the agreement is still valid or whether <br />amending agreements have been approved since 1971. Since costs have increased <br />substantially since 1971, the City of Blaine is asking the City of Mounds View to execute a <br />new agreement, which does not include any specific fees—the agreement indicates that <br />the fees to connect will be at the going rates as approved by the City of Blaine. <br /> <br />Recommendation: <br /> <br />The City Attorney reviewed the original agreement from 1971 and opined that the <br />agreement was not likely enforceable, and that it would be an unreasonable expectation <br />that the City of Blaine would have to extend sewer and water services to the subject <br />property at 1971 rates. Accordingly, a new agreement has been prepared by the City of <br />Blaine and they are requesting our approval, which can be done via Resolution 8692. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />City Administrator <br /> <br />