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During a regular Elk Rapids Village Council meeting held Tuesday, Feb. 20, the council also approved a bid for Elmer's to complete westside alley construction; adopted the 2007-08 budget, which will reduced the village's millage rate by an anticipated .1785 mills; and approved a five-year Community Recreation Plan.

During the meeting, village manager Bob Peterson recommended the water fee increase because the village's water operation fund has been on the "edge" and has required transfers from the water capital fund.

In his regular communication to council, Peterson wrote that $30,050 was transferred from water capital this year and an anticipated transfer of $25,000 will occur next year.

He said if the village continues the transfers, it won't have the money to complete water improvement projects that have been discussed at previous meetings.

Village President Dan Reszka asked if the increase would help finance those projects, and Peterson said it would. If the village uses a bond to pay for the water projects, the money saved from transfers would pay for a significant portion of that bond, he said.

Peterson said the $25,000 in the anticipated transfer "means a lot in water capital for us," and he "very much" wants to be able to complete some water improvement projects this summer.

The fee is now at $6.80 and is a flat-rate portion of the water bill. Before the council decides on the rate increase, a first reading of a resolution will be held during the council's next meeting and a public hearing and second reading will be held in a month.

In other action, the board approved the low bid from Elmer's to complete improvements to the alley between Bridge and Pine streets.

Elmer's submitted a base bid of $348,719, which increases to $374,088 with alternative additions.

Tonya Lewandowski, a project manager from Gosling Czubak Engineering Services, was on-hand to answer questions about the bids.

Council Trustee Steve Francis pointed out that Elmer's bid was considerably lower than others in the area of "sand bedding and backfill for pipe trench." If the existing sand is reused, which was the reason why Elmer's bid was lower, he wondered if there would be a way to guarantee the sand was suitable for use.

Lewandowski said Gosling Czubak will inspect and oversee the project and will confirm that the soils are suitable. She said Elmer's knows the bid is a risk, but it's "their gamble," not the village's. "Elmer's won't come crying" if the sand isn't usable, she added.