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Hugo City Council Meeting Minutes for August 15, 2016 Page 5 of 7 Discussion on Waters Edge Stormwater Reuse Project and Approve Agreement with Rice Creek Watershed District Intern Taylor Richter provided background on the grant RCWD received from the Met Council, for the Storm Water Reuse Project to be located in the Waters Edge Development. The grant is in the amount of $200,000 and will provide partial funding for construction of a stormwater reuse system that will draw from a stormwater basin within the Water's Edge residential development for irrigation purposes, which will reduce groundwater appropriation demands and will reduce the introduction of phosphorus and other pollutants to waters. The grant is awarded through the RCWD because of Met Council rules. The RCWD is the applicant and grantee by name only. The City is responsible for the project and will receive the entire grant amount under a Memorandum of Understanding with the RCWD. The project will connect the existing irrigation system to stormwater, and the City will work with the homeowner's association on system construction, operation, and maintenance. WSB Engineer Erin Heydinger provided information on the work plan that was submitted to the Met Council. The estimates for construction were $434,000 with $87,000 of indirect fees. It is anticipated the City will receive an additional $30,000 from the RCWD. The City costs were estimated at $292,000, which would come from the water fund. The City and the Home Owners Association will have an agreement establishing a water rate for the water pumped from the pond to reimburse the City for the initial investment as well as cover maintenance costs. The City would own the system to the water meters, and the HOA would own it to the irrigation system. Construction would take place next year. The Council questioned whether there would be any budgetary impacts and whether Water's Edge was paying anything toward the system. Staff responded they would not; however, discussions were being had with the HOA about selling the water to them at a lower cost to recoup money the City has put into the system. Klein made motion, Miron seconded, to approve the Memorandum of Agreement for the Water's Edge Stormwater Reuse Project. All Ayes. Motion carried. Discussion on Utility Billing for Rental Units Administrative Intern Taylor Richter explained the request to amend the City's Utility Ordinance due to the increasing amounts of administrative time in regard to the utility billing for approximately 128 rental properties. The City has been sending the utility bills to the tenant if requested, but staff has had difficulty with tenants who don't pay, and time is spent on frequent tenant changes, which requires extra meter reads. Current ordinance required the property owner to be responsible for the bill; however, it had not been the practice. Staff requested an amendment to the ordinance to bill the property owner only.