11/26/2002 - City Council Special
AGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
November 26, 2002
5:30 p.m.
1. ROLL CALL & AGENDA ADOPTION
II. VISITORS TO BE HEARD
III. REDEVELOPMENT UPDATE FOR CEDAR GROVE
• Keystone Proposal
• AMCON Proposal
IV. ALL OTHER PROPOSED 2003 BUDGET ITEMS
Cascade Bay, BECTV, Community Center/Central Park
& Civic Arena
V. CAPITAL IMPROVEMENT PROGRAM MODIFICATION/
UPGRADES TO PILOT KNOB RD & LONE OAK RD
VI. COACHMAN WATER TREATMENT EXPANSION/
MODIFICATION UPDATE
VII. JULY 4TH CELEBRATION UPDATE
VIII. OTHER BUSINESS
IX. ADJOURNMENT
- MEMO
_ city of eagan
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: NOVEMBER 26, 2002
SUBJECT: SPECIAL CITY COUNCIL MEETING /NOVEMBER 26, 2002
REDEVELOPMENT UPDATE FOR CEDAR GROVE
Keystone Proposal:
Keystone Communities was selected this summer by the City Council as the preferred redeveloper for
the Langhoven Addition at Silver Bell Road and Cedar Grove Parkway in the Cedar Grove
Redevelopment Area. Staff and consultants have been working with Keystone to prepare a site plan
that is consistent with the concept goals of the CGRA and the design standards currently in draft form,
and to produce a project with significant value to create available tax increment for the redevelopment
fund.
Keystone is proposing to build in two phases. The first phase project will be a 4-story, 126 unit
mixed-service senior housing community to include independent living, assisted living and memory
care units. The project will be built on the five City-owned parcels (purchase of a sixth parcel is being
negotiated) at the comer of Silver Bell and Cedar Grove Parkway across from McDonald's.
The terms of agreement are attached on pages through . The proposed site plan is
attached on page The terms of the agreement only apply to the first phase. The proposed
terms of agreement would include a placeholder for the second phase (to be built on Gold Trail and
Cedar Grove Parkway) with a deadline of August 1, 2003.
Senior Planner Ridley and Phil Carlson of Dahlgren, Shardlow & Uban (DSU) met on Friday,
November 22 with Keystone's architect to clarify issues related to the proposed design standards.
A representative of Ehlers & Associates will be present to answer questions related to the agreement.
If given positive direction, staff anticipates that a final redevelopment agreement could be presented
for consideration by the City Council and Economic Development Authority at the second meeting in
December (Dec. 17th).
AMCON Proposal:
The City entered into a preliminary redevelopment agreement with AMCON Construction several
months ago for a single-story 25,000 square foot commercial-retail development at the west corner of
Silver Bell Road and Cedar Grove Parkway, on the former site of the donut shop and Twin City
Poultry, and the existing All-America Recreation building.
Much of the discussion with AMCON has focused on the site plan and layout. AMCON
representatives met with staff and DSU on November 22 to look at options. A preliminary financial
pro forma has been prepared, however a more thorough review of costs and values will not be
available until a final layout and square footage is completed.
In addition to preparing the financial information and site plans, AMCON has taken positive steps
toward discussing acquisition of the All-America Recreation site with the current owner, including
searching potential relocation sites. AMCON has also engaged United Properties to act as the leasing
agent for the project.
It is anticipated that a proposed terms of an agreement could be prepared before the end of the year and
a development agreement drafted as early as January.
Staff and consultants will share more information as part of the presentation.
DIRECTION TO BE CONSIDERED:
Give staff direction regarding the Keystone Communities and AMCON Construction proposals in the
Cedar Grove Redevelopment Area.
ALL OTHER PROPOSED 2003 BUDGET ITEMS
The Truth in Taxation Hearing for the 2003 Proposed General Fund Operating Budget and property
tax levy is scheduled for the December 2, 2002 City Council meeting. Scheduled for the December 17
City Council meeting, is the adoption of the 2003 General Fund Budget, all Public Enterprise Fund
budgets that have been presented throughout the fall of 2002 at special work sessions and all Special
Revenue Fund budgets.
For this meeting there are some final considerations to make for the 2003 Cascade Bay admissions
fees, budget consideration for the BECTV and a preliminary discussion on the proposed Community
Center/Central Park budget for 2003. For informational purposes an update on the Civic Arena budget
is also provided.
Cascade Bay
At the Special City Council meeting held on November 12, 2002 questions were raised about the
personal services section of the budget. The questions related primarily to the significant increases in
line items 6142 PERA-Coordinated and 6151 Health Insurance. Those two line items are tied directly
to line item 6110 Salaries and Wages-Regular on a percentage basis. The Salaries line item increased
between 2000 and 2001 actuals and 2002 and 2003 budgets because of position vacancies in 2000 and
2001 reflected in the actual expenditures. The 2002 and 2003 budgets include the 2.4 full-time
equivalent positions allocated to Cascade Bay. The increase in the PERA line item directly reflects the
change in the Salaries line item. The increase in the Health Insurance line item also reflects the actual
t budget change in Salaries as well as an increase in cost projected for 2003. Enclosed on page
is a copy of the personal services section of the proposed 2003 Cascade Bay Budget.
The questions helped staff to uncover an error in the cost of Health Insurance for 2000 which is being
corrected. The budget page shows a cost of $12,239 which should be $6,087.
At the same meeting there was discussion about a potential inflationary fee increase for the 2003
season at Cascade Bay. Director of Parks and Recreation Vraa has prepared the memo enclosed on
page / proposing an inflationary increase to the rates along with an estimate of the increased
revenue based on attendance projections previously developed.
DIRECTION TO BE CONSIDERED:
To authorize preparation of 2003 marketing materials incorporating the rate increases and to provide
any additional direction to staff on the overall Cascade Bay Budget which will be considered for final
approval at the December 17, 2002 City Council meeting.
Burnsville Eagan Cable Television
Each year the city councils of Eagan and Burnsville approve the Burnsville Eagan Community
Television budget and the Burnsville Eagan Telecommunications Commission budget. Eagan staff
has just recently received the draft budgets and will be reviewing them and presenting summarized
budget information for these two entities at the meeting on Tuesday. The Burnsville City Council
will be considering the budgets at its regular meeting on December 16, 2002. The budgets will be
placed on the December 17, 2002 Eagan City Council agenda for formal approval.
DIRECTION TO BE CONSIDERED:
To provide direction to staff for incorporation into the Burnsville Eagan Community Television
budget and the Burnsville Eagan Telecommunications Commission budget.
Community Center/Central Park
The City Administrator, Director of Parks and Recreation and Community Center Manager have had
considerable discussion regarding the budget for the Center. While work is progressing on
developing a budget, progress is slow due to other project demands and recognizing that the budget
must be done in concert with hours of operations, operations and program development, fee setting
and revenue generation, in addition to staffing considerations. Staff will be presenting a preliminary
budget for City Council consideration at a future workshop.
Progress continues on central park construction with crews working around the issue of the
saturated soils in the area of the pond. With cold temperatures projected for next week, it's unlikely
that landscaping, bituminous, and flat work concrete will be able to continue. Efforts to complete
the pond, pond liner, retaining wall, and work on the east side of the building will continue until
weather no longer permits.
DIRECTION TO BE CONSIDERED:
To provide direction to staff for use in completion of the preliminary Community Center/Central
Park budget.
Civic Arena
The 2003 budget presented by staff at the July 16 Council workshop reflected a net deficit of
(x26,129).
At the workshop the Council provided direction on hourly ice rates and removed three items from
the expense budget. The effect of those changes is as follows:
Increase ice rental revenue $ 14,700
Expenditure Reductions:
Remove building door security $9,000
Remove security system (cameras) 3,000
Remove Home & Leisure Show advertising 6,000
Total Reductions $18,000
The net effect of these changes is to show an increase in cash position of $32,700 from the
preliminary budget presentation turning the deficit of ($26,129) to a positive balance of $6,571.
Enclosed on page is a copy of the revised revenue estimates for the 2003 budget
incorporating the 2002-2003 season. Enclosed on page_ is a cumulative cash position
showing the increase of $6,571 from 2002-2003 operations as well as the cumulative position over
the total period of operation of the Civic Arenas.
DIRECTION TO BE CONSIDERED:
This item is provided as an update to City Council action taken at the July 16, 2002 workshop and
requires no additional action at this time.
CAPITAL IMPROVEMENT PROGRAM MODIFICATION / UPGRADES TO PILOT KNOB
& LONE OAK
On June 4, 2002, the City Council approved and adopted the 5-year Capital Improvement Program
(CIP) for 2003-2007. Among other major infrastructure improvements, this CIP provides for the
coordinated planning and construction of various County Roads within the City. The Public Works
Director has prepared a memo enclosed on page 1B _ addressing the need for the Council to consider
amending the approved CIP to reprogram 2 of these County Road improvements.
COACHMAN WATER TREATMENT EXPANSION/MODIFICATION UPDATE (Prof. 868)
The expansion of the City's north Water Treatment Plant located on Coachman Rd. has been planned
and programmed since the early 1980's. The Public. Works Department has been monitoring the City's
projected demand for treated water during this time frame and has initiated the construction of new
facilities as necessary to continue to accommodate the City's growth. As identified in the City's
Comprehensive Water Supply & Distribution and Capital Improvement Plans, it is timely for the City
to consider its proposed final expansion and renovation to the Coachman Water Treatment Facility. In
accordance with the process that was initiated last March, a Preliminary Design Report (PDR) has
been prepared at this point of 30% concept design. This PDR is being presented to the Council for
their review, discussion and direction in proceeding with the next design phase. Enclosed on pages
through is a cover memo from the Director of Public Works including an attached
memo from the Finance Department. Enclosed without page number is a copy of the PDR report
itself. Representatives of staff and the Consultant will be available at the Workshop to present and
respond to this item.
TULY 4"' CELEBRATION UPDATE
Members of the City Council requested an update and discussion regarding the site for the 2003 July
0' Celebration. There were issues raised at the November 19 City Council meeting as to whether the
July 4"' Celebration would be held in Central Park next season.
/s/ Thomas L. Hedges
City Administrator
5
x
EHLERS
& A S S O C I A T E S I N C
O To: Jamie Verbgrugge, City of Eagan
From: Jim Prosser & Stacie Kvilvang, Ehlers & Associates
LLJ Date: November 21, 2002
G Subject: Keystone Senior Housing Proposal
Keystone Communities has completed preliminary planning for the proposed senior development within the
Cedar Grove Redevelopment Area. Keystone is proposing to develop a 126-unit, market rate senior housing
development on the properties currently owned by the City. Site design will accommodate the development
of additional housing units when land becomes available.
FolloNving are the basic issues proposed to be included within the final Development Agreement:
1. Developer to purchase six (6) city owned lots (104445001001/ 104445002001/ 104445003001/
104445004001/ 104445006101/ 104445006201), net of land needed for roadway purposes.
2. Developer will pay City $7,500 per unit for land, for a total of $945,000.
3. Developer will receive credit on total purchase price for park dedication, trail way fee and
roadway assessment. This will reduce the amount of reimbursement to the Redevelopment
Project Fund (see chart on following page).
4. Developer will construct a minimum of 126 units, except as otherwise approved by EDA.
5. Developer shall report to City the status of land assembly efforts for balance of site no later than
August 1, 2003.
6. Development must comply with City design guidelines in effect at time of site plan review.
7. The City will convey the site cleared and ready for development.
8. If development is not initiated within 180 days of final approvals, City shall have right to
purchase property at sale cost.
9. Acquisition is subject to no site contamination. City will complete Phase 1 environmental review.
10. The City will improve road surface of Alder Lane to City standard and the Developer will pay
proportionate share (estimated at $10,000).
11. City will delineate wetland.
12. City will review extension of preliminary development agreement for balance of site after August
1, 2003 property assembly status report by developer.
13. Developer will provide payment of $12,500 for out of pocket costs incurred by City for legal,
financial and planning fees related to preparation and approval of final project.
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive Phone: 651-697-8503 Fax: 651-697-8555
Roseville, MN 55113-1105 Email: jim@ehlers-
inc.com / _
Jamie Verbrup-2e
No%-ember 25002
Page 2
14. Upon approval of a final Development Agreement the developer will initiate land use review
process. Approval of the final Development Agreement will not replace normal land use review
requirements.
Upon EDA approval of the Development Agreement issues outlined in this memo, a final Development
Agreement will be prepared and presented for approval by the EDA.
Development Costs
Keystone DevelopN:\Minnsota\Eagan\Cedar Grove\Keystone\Terms 11.21.02.doement
Cedar Grove Redevelopment Area
Cost
Citv Cost to Acquire Land ($1,198,718)
Developer Land Payment
(126 units X $7,500 $945,000
Trailwa Fee ($23,940
Park Dedication Fee $183,330)
Roadway Assessment (759R/800R $84,596
NET REIMBURSEMENT ($545,584)
Projected TIF $1,043,944
NET AVAILABLE TO REDEVELOPMENT FUND $498,360
.Vote: The net amount the Developer will end up paying for land is $653,134 ($5,1841unit). The
Developer is not requesting TIF assistance, therefore TIF generated from the development will be
available to the City for use on other projects within the redevelopment area.
C:\windows\TEMP\Terms 11.21.021.doc ""7
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City of eagan MEMO
TO: Tom Hedges, City Administrator
FROM: Ken Vraa, Director of Parks and Recreation
SUBJECT: Recommended Rate Increase
DATE: November 21, 2002
With operating costs rising and equipment deteriorating, Cascade Bay needs to stay ahead of the
increasing expenditures with a minimal rate increase. Staff feels it would be easier to implement
a minimal increase on a more frequent basis, than to increase rates significantly in a couple years
to try and catch up. The following is a breakdown of the recommended changes and the
outcomes that would prevail:
• Raise daily admission fees $0.25 each, this would increase revenue $22,600
• Raise Season Pass fees $3.00 each, this would increase revenue $18,900
The fee structure would then look like:
Daily Admission Fees
Before 5pm After 5pm
Guests 42" or taller $8.00 $6.00
Guests under 42" $6.00 $4.50
Seniors-62 and under $6.00 $4.50
Season Pass Fees
Residents Non-Residents
First family member $54.00 $64.00
Each additional family member $44.00 $54.00
Additional family members under 42" $30.00 $40.00
Seniors $30.00 $30.00
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MEMO
` city of eagan
TO: MAYOR AND CITY COUNCIL MEMBERS
THOMAS L. HEDGES, CITY ADMINISTRATOR
FROM: THOMAS A. COLBERT, DIRECTOR OF PUBLIC WORKS
DATE: NOVEMBER 19, 2002
SUBJECT: AMENDMENT TO THE 5-YR CIP (2003-2007)
COUNTY ROAD IMPROVEMENT - REPROGRAMING
BACKGROUND
On June 4, 2002, the City Council approved and adopted a 5-year Capital Improvement Program (CIP) for
200-2007. Part of this CIP addressed the various collector and Arterial Street improvements, including
several County Roads. In particular, Lone Oak Rd. (County Rd. 26) from Hwy 149/55 to Inver Grove
Heights was scheduled for an upgrade from its current 2-lane rural section to a 4 lane divided roadway with
off street trails in 2005. Also, Pilot Knob Rd (County Rd. 31) from Yankee Doodle Rd. to Lone Oak Rd.
N\ as scheduled for an upgrade from its current 4-lane undivided section to a 4 lane divided roadway in 2004.
Lone Oak Rd
Since that time, the Gift of Mary development proposal was approved located between Hwy 55 and Lone
Oak Rd. adjacent to Inver Grove Heights. This development proposal requires the extension of a trunk
watermain within the future roadway improvement area of the Lone Oak Rd. upgrade. Due to the proposed
occupancy of the Gift of Mary development in the summer of 2004, this watermain extension would have to
be completed in the spring of 2004, or earlier. It would be most cost efficient to have this watermain
constructed during the early stages and as part of the County Road improvement to avoid patching an
existing roadbed and reconstructing this new watermain within the following year to meet the design
changes in roadway elevations. The County does not have the fiscal or human resources to accelerate the
Lone Oak Rd. improvement without deleting a comparable improvement from an earlier program year. The
CIP estimate for this improvement is $1,300,000.
Pilot Knob Rd.
Pilot Knob Rd. was programmed for its proposed improvement in 2004 in response to several business
requests for the signalization of the new Central Parkway and existing Towerview Rd. intersections. Dakota
County has indicated that if this section of County Road were delayed one year, they would be amenable to
installing a temporary signal, if the warrants and priorities were met prior to a scheduled improvement. The
CIP estimate for this improvement is $1,500,000.
Reguested Consideration
Due to the need to begin right of way acquisition along Lone Oak Rd. early in 2003 to have the easements
available for an early 2004 contract letting, the City and County would have to enter into an agreement early
in 2003, before the next CIP (2004-2008) is prepared for Council consideration. Therefore, this proposed
amendment (to switch these two program years) is being presented to the Council for their consideration at
this time.
Respectfully submitted,
MEMO
city of eag
TO: MAYOR & CITY COUNCILMEMBERS
THOMAS L. HEDGES, CITY ADMINISTRATOR
FROM: THOMAS A. COLBERT, DIRECTOR OF PUBLIC WORKS
DATE: NOVEMBER 19, 2002
SUBJECT: PROJECT 868, NORTH WATER TREATMENT PLANT EXPANSION
HISTORY
In 1982, the Comprehensive Water Supply and Distribution Plan (WSDP) for the City of Eagan
first identified the need for water treatment facilities to address iron, manganese and hardness water
quality issues of the City's ground water supply. As a result of a community wide public meeting,
the City Council decided to proceed with an iron and manganese removal process only, with the
softening of the hard water being addressed at the point of use (i.e. home softeners). The City's first
water treatment plant (WTP) was constructed on Coachman Rd. in 1983 serving the City's north
Well field. The 12 million gallon per day (MGD) capacity was designed to handle the City's
estimated population of 47,000 for the year 2000.
With the explosive growth that the City experienced during the 1980's, a planned second water
treatment facility (Cliff Rd.) was constructed in 1990 (census count, 47,400) with an additional
capacity of 14-16 MGD to serve the City's newly developing south well field. Subsequent updates
to the City's Comprehensive WSDP in 1988 and 1996 continued to identify the planned expansion
of the north (Coachman Rd.) treatment facility to its ultimate capacity of 22 MGD estimating its
need by the year 2000 with an estimated population of 63,500 (census count, 63,557). On several
occasions in 1997 and 2001, the north treatment plant had to process in excess of 13.5 -14.0 MGD
(12-17% over design capacity). Just this past summer (3rd wettest on record), the plant had to
process 12.1 MGD.
BACKGROUND
The north well field cannot be expanded with the development of more wells to meet the
continually growing water supply demands of the City until the last phased expansion of the
Coachman Rd. WTP is completed. One of these future wells (#20 - Central Park) has already been
drilled but will remain dormant in the interim. In addition, the control technology in this current
treatment facility is approaching 20 years old and is outdated and in need of upgrading. Also, this
facility needs to be upgraded to meet the current Department of Health and Uniform Building and
Fire Codes.
In 1985, the Public Works garage was demolished and a new Central Maintenance Facility was
constructed in the same location. This facility was expanded again in 1989 and a cold storage
building was built in 1993. These expansions were part of an overall planned phased development
for the City's operations and maintenance facility. The last remaining phase of expansion planned
for additional heated vehicle storage and equipment bays and another cold storage building. The
City has been actively involved in negotiating with Blue Cross Blue Shield to acquire additional
land (3.39 Ac) necessary to accommodate this additional cold storage building and staging area
expansion. Also during this time period, the City's service delivery has expanded adding a Water
Resources Division, a Forestry Division and a Geographic Information Systems (GIS) operation
into the Central Maintenance Facility. These additions have put a strain on the administrative office
and support needs.
PRELIINIM ARY DESIGN REPORT (PRD)
On March 19, 2002 the City Council authorized the staff to solicit and retain a design consultant to
prepare the necessary plans and specifications for the construction of the planned expansion and
renovation to the north Water Treatment Facility with construction programmed for 2003 and a
planned completion in 2004. On July 16, the Council authorized retaining the firm of SEH Inc. This
firm has completed the attached Preliminary Design Report (PDR) that reflects a 30% design
concept to date including a preliminary opinion of cost ($17,255,000). Drawings are included
showing how this expansion would be situated within the very tight space constraints of the Central
Maintenance Facility property. Conceptual floor plan layouts for the various different elements of
this project are also included along with the impact of the City required street outlet/access road for
the Blue Cross Blue Shield PUD. Representatives of S E H and Public Works Department staff will
be available to describe in finer detail the many aspects of this project and the related design
considerations.
FINANCING
Historically, the City has had a stable and reliable funding mechanism to finance major expansions,
renewals and replacements of our water utility infrastructure. These have consisted primarily of
building/utility permit connection fees, billing/account fees and usage fees to both set aside a
reserve fund for future expenditures and repayment of revenue bonds sold to finance previous
improvements. A memo from the Director of Administrative Services addressing the financing
opportunities of this proposed improvement is also attached.
SUMMARY
This is the last of several very significant projects that will complete the ultimate water treatment
needs necessary to accommodate the build out development of our community. It will also cost
effectively and efficiently address the long-term space needs of the Central Maintenance Operations
Facility. It is anticipated that final plans can be completed in the next 4 months and ready for
bidding around the first of April with opportunities for additional Council reviews at the 60% (mid
January) and 90% (mid March) time frames. The staff would be most appreciative of any Council
input as this project progresses.
Respectfully submitted,
'
' Thomas A7
Financing memo
PDR Report
Cc: Wayne Schwan, Supt. of Utilities (w/enc) UTAC/Projects/868/30%memo
Gene VanOverbeke, Dir. of Admin. Services (w/enc)
MEMO
city of eagan
TO: Director of Public Works Colbert
FROM: Director of Administrative Services VanOverbeke
DATE: November 22, 2002
SUBJECT: Financing of North Water Treatment Plant Expansion
and Related Facilities
At your request I am providing the following general possible financing scenario for the
above referenced project. The Preliminary Design Report dated November 14, 2002
includes the following preliminary opinion of probable costs:
Utility Operations Area $ 1,615,000
Office Areas & Office Equipment 1,090,000
WTP Expansion / Site Work 10,070,000
Clearwell Expansion /Yard Piping 1,420,000
Existing WTP Renovations & Code Issues 2,320,000
Controls & City SCDA System 800,000
Subtotal $17,315,000
BCBS Land Acq & Road Participation
(without wetland replacement) $300,000.
Grand Total $17,615,000
One possible funding scenario using no additional (new) bonds is as follows:
Operations (Retained Earnings)
Utility Operations Area $1,615,000
Office Areas & Office Equipment 1,090,000
Existing WTP Renovations & Code Issues 1,685,000
Controls & City SCDA System 400,000
BCBS Land Acq & Road Participation
(without wetland replacement) 300,000
Subtotal $5,090,000
Renewal and Replacement
Existing WTP Renovations & Code Issues $635,000
Controls & City SCDA System 400,000
Subtotal $1,035,000
Supply and Storage
Clearwell Expansion / Yard Piping $1,420,000
Subtotal $1,420,000
Treatment Plant Financing Account
WTP Expansion / Site Work $10,070,000
Subtotal $10,070.000
Grand Total $17,615,000
As the project is refined, the allocation between the various funding sources may
change to continue to correctly align the correct funding source with the different types
of expenditures. A brief description of each account is as follows:
Operations (Retained Earnings) This account consists of the cumulative results from
operations over the years. Revenues are raised primarily through the sale of water.
Expenses include the cost of production, treatment, delivery of water and related
maintenance operations. Current balances are such that the retained earnings account
can finance the proposed construction as allocated above.
Renewal and Replacement This account is used to record transactions for the
dedicated portion of user fees being set aside to provide financing for replacement of
infrastructure as it completes its useful life. Costs related to renewal of the existing
treatment plant are shown as an obligation of this funding source.
Supply and Storage This account is funded through dedicated user fees and through
connection charges to provide for expansion of infrastructure used for supply and
storage of water.
Treatment Plant Financing Account This account has been used to accumulate
resources from dedicated user fees (treatment and debt service) and from treatment
plant related connection charges. To date the account has provided for the
construction of both treatment plants and related debt service. The account has
effectively been used to provide rate stability as debt service obligations have been
added.
Given the current cash balance and existing debt service obligations, we are projecting
that the account can finance the above referenced amount ($10,070,000) with some
limited internal borrowing for the treatment plant expansion. The account can also
continue to pay existing debt service obligations through continuation of the dedicated
treatment plant and debt service components of the user rate for approximately nine (9)
years. It also assumes continuation of related treatment plant connection charges as
development continues.
The use of this account in this manner provides no funding for any subsequent
expansion or addition to either of the treatment plants beyond the one under
consideration with this project. Those costs would be covered by renewal and
replacement funds and/or other revenue sources determined at that time.
At this point I see no need or advantage to selling any new bonds or to make any
changes to the bonds that are currently outstanding and scheduled to be retired in
December of 2010. This funding scenario has no direct impact on existing rates.
Please let me know, if you have any questions or would like to discuss any or this
information.
ql-ky
Directo f Administrative services
cc: City Administrator Hedges
Chief Financial Officer Pepper
17
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