1974-12-09 Council minutes0
Page 460
December 9, 1974
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Special Meeting
Held on Monday, December 9, 1974
Pursuant to due call and notice thereof, the special meeting of the City
Council, City of Mendota Heights, was held at 8:00 o'clock P.M. at the City
Hall, 750 South Plaza Drive, Mendota Heights, Minnesota.
Mayor Huber called the meeting to order at 8:00 o'clock P.M. The following
members were present: Mayor Huber, Councilmen Gutzmer, Lockwood, Losleben
and Wahl.
MENDOTA WATER Mayor Huber pointed out that the special meeting was called
COMPANY RATE in an attempt to resolve the request from the Mendota Water
INCREASE REQUEST Company for a rate increase. Mayor Huber asked for questions
and comments from the audience.
Mr. John McGirl, attorney for the Water Company, stated that the
company has compiled a new operating budget and has made a
study of the St. Paul Water Department rate system for
suburban communities. He requested, on behalf of the Mendota
Water Company, that the Council approve a rate schedule base d
on the 1975'St. Paul Water Department rate system for suburban
communities, rather than the previously requested rate increase.
He pointed out that such a schedule would be based on actual
water useage rather than the current rate of $7.50 per month
for useage of up to 30,000 gallons. He stated that due to
increased maintenance and repairs, the original request for
an increase to $9.00 per month would be inadequate. He
estimated an average projected monthly rate of $12.87 per
residence for the 234 residences served by the system (based
on the St. Paul rates).
Mr. Joseph LaBuda, Board member of the Water Company, stated
that the rates, based on the 1975 St. Paul rates would be
a $3.15 demand charge plus $.47 per 100 cubic feet of water
used during the quarter. He pointed out that meters would be
read quarterly and that there would be quarterly billings.
Mr. Warren Tyler distributed copies of the proposed 1975
Mendota Water Company budget.
Councilman Losleben outlined his memo to the Council regarding
granting a rate increase-tb the Water Company. He pointed out
that what constitutes a reasonable return on investment has not
been determined yet. He suggested that an increase be granted
based on compliance with the following: 1.) receipt of
specifications on the system; 2) receipt of a detailed plan
for system corrections to bring the system into compliance with
Sec. 2.09 of the Franchise Ordinance; 3.) preliminary study on
adaptability of the system into the municipal system in 1981;
4.) systematic plan for checking meters; 5.) establishment of
a system for reporting maintenance problems and complaints to the
City; 6.) submission of minutes of stockholders meetings and
advance notice of dates for such meetings.
Ayes: 5
Nays: 0
Ayes: 5
Nays: 0
RECESS
SPACE STUDY
Page 461
December 9, 1974
Mr. McGirl stated that the company will provide the meeting
minutes and advance notice as well as a complaint list but
that the company would not be Able to provide as-built
plans and objected to being required to provide information
on adaptability of the system to the existing public facilities.
The Council members discussed at length the aspect of return
on investment, and directed the City Attorney to work with
Mr. McGirl to resolve the question.
There being no further questions or comments from 'the audience,
Mayor Huber moved that the hearing be closed.
Councilman Losleben seconded the motion.
The hearing was closed at 9:50 o'clock P.M.
Councilman Gutzmer moved that the Mendota Water Company rates
be established on the basis of the 1975 St. Paul Water Depart-
ment rates for suburban customers, effective January 1, 1975,
and conditional upon compliance with the list of conditions
specified by Councilman Losleben, with the exception of
item number 3.
Councilman Lockwood seconded the motion.
Administrator Johnson pointed out that the City does not have
a copy of the specifications on the system and that the City
will need additional information prior to discussions with
the St. Paul Water Department on integrating the Mendota Water
Company system into the St. Paul system after the franchise
expires. Mayor Huber suggested that the company be requested
to furnish any information available on the system construction.
After a lengthy discussion, Councilman Lockwood withdrew
his second to the motion. Councilman Gutzmer withdrew the
motion.
Councilman Gutzmer moved that the City Attorney be directed to
prepare a resolution authorizing the Mendota Water Company rates
to be increased to reflect the St. Paul Water Department charges
for suburban users, which are to be effective on January 1, 1975;
and requested that the company voluntarily comply with
Councilman Losleben's conditions, excepting item number 3.
Mr. McGirl stated that he agreed and would comply.
Councilman Lockwood seconded the motion.
Mayor Huber called a recess at 9:51 o'clock P.M. The meeting
readjourned at 10:00 o'clock P.M.
City Planner Barbara Lukermann was present to update the
Council on the progress of the Space Study. Mrs. Lukermann
gave a slide and graphic presentation of space needs and
adaptability of the Civic Center site. She indicated that
Public Works storage space and situation of a 21/2 million
gallon water tank would need special consideration. She
listed several problems with the site, and the Council and
staff members discussed with Mrs. Lukermann the contents of
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December 9, 1974
the interim space study report and the verbal/visual
presentation.
ADJOURN There being no further business to come before the Council,
Mayor Huber moved that the meeting be adjourned.
Councilman Wahl seconded the motion.
Ayes: 5
Nays: 0
TIME OF ADJOURNMENT: 12:08 o'clock A.M.
0
ATTEST:
Donald L. Huber
Mayor
u