Loading...
8.1. SR 12-17-2012 fi City of Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 8.1 AGENDA SECTION MEETING DATE PREPARED BY General Business December 17,2012 Justin Femrite,P.E., City Engineer ITEM DESCRIPTION REVIEWED By Policy Change Associated with Highland Road Sewer and Water Cal Portner, City Administrator Connections REVIEWED BY ACTION REQUESTED Approve changes to the policy as it relates to collection of sewer and water assessments from properties with services along Highland Road. BACKGROUND/DISCUSSION On December 10,2012, the City Council reviewed and approved two ordinance amendments as it relates to the connection and financing of service connections to the public sewer and water system. The first ordinance amendment approved allows for existing home owners,who have availability to public sewer and water,to make connection to those systems and have the costs assessed to their property. This ordinance was passed to assist property owners,who are required to be connected to the public systems, with the costs of making the connections. This financing option for property owners will be in place until December 31,2015. The second ordinance amendment that was considered and adopted related to the connection of existing homes to the sanitary sewer and water system. Previously,Chapters 78-21 and 78-97(d) of the Elk River City Code detailed that all properties with access to sewer and water services be connected to the public systems within two years of said utility being made available. The ordinance was amended to remove and replace the two year requirement with a requirement for a property with public services available to be connected to the municipal services at the time of failure of either the existing septic system or well or when the property is sold,whatever comes first. Highland Road Sewer and Water Assessments At the August 21,2006,meeting,the City Council approved a policy to charge the properties along Highland Road for the sewer and water systems that were installed as part of the 2006 improvement project. These utility improvements resulted in providing individual sewer and water services to 25 properties along Highland Road. The 2006 policy stated the properties would be assessed$15,000 for the cost of the city to provide the services. Those properties that did not connect to the new services in 2006 would still be required to pay the assessment at the time of hook up in the future but the principle amount would be increased by 3% annually thereafter to cover inflation. Of the properties that received services,no property owners elected to connect to the system in 2006 and none have connected since that time. P O 11 E u E 0 1 I! 1ATU1I In an effort to incentivize the connections be made,the City Council discussed changes to the policy. The direction was to hold the amount of the assessment at$15,000 for all connections made within the next three years. The details of the changes are as follows: A Highland Road property owner,upon petition to the city,can connect to the sanitary sewer and water systems before December 31,2015, and assume a flat assessment of$15,000 for the principal on the sewer and water assessment. Those properties delaying connection past December 31, 2015,will be charged the $15,000 assessment with accrual of an annual 3%inflation charge to be calculated starting back in 2006. This would result in a principle assessment amount for properties choosing to connect in 2016 of$20,163. The above described policy change does not affect the requirement of all properties to also pay the current year fee for both the Sewer and Water Access Charges. Those charges and the costs to connect the building to the new services located at the right-of-way will still be costs that need to be covered as part of making the connection. Per the ordinance amendment described above, all of the costs qualify for being assessed to the property if the owner chooses to connect within the next three years. Upon the approval of the policy change by the City Council, staff will prepare and send a letter to each of the property owners along Highland Road detailing the policy and ordinance changes. FINANCIAL IMPACT There is no financial impact associated with this change in policy because the City Council and Elk River Municipal Utilities have already made the financial commitment to provide these services. Any financial impact would be in a positive direction as residents decide to hook up and agree to begin paying an assessment for the sanitary sewer and water system. ATTACHMENTS • Staff report and Council minutes from August 21, 2006 Action Motion by Second by Vote Follow Up r IEREII ATURE [:) tor River City of Elk River Item Number REQUEST FOR COUNCIL ACTION 5.11. Agenda Section Meeting Date Prepared by Engineering August 21,2006 Terry Maurer,City Engineer Item Description Reviewed by Highland Road Sanitary Sewer and Water Assessment Introduction The Highland Road Project is proceeding and will be substantially complete this fall. As you are aware,sanitary sewer and water are part of the construction. We have received a number of inquiries about the cost to hook up to the City sanitary sewer and water system. Discussion We have reviewed the costs for sanitary sewer installation and the costs for the modifications to the existing water system with the current bid. In addition,we have taken a look at the investment the Elk River Municipal Utilities have made in the trunk line connecting the two high pressure zones via the Highland Road corridor. We have measured that against the number of properties that could be served by it,keeping in mind that some of the properties will be able to be subdivided in the future with sanitary sewer and water available. Also,there is a larger area included in the City's Urban Service District which will be someday be served through these facilities. With this analysis as a backdrop,we are recommending that existing properties that want to hook up to sanitary sewer and water be charged a$15,000 assessment. This would be in addition to the already levied street assessment. Properties wanting to hook to sanitary sewer and water would have to sign a Petition and Waiver,accepting the$15,000 assessment. The assessment would be charged against their property at 5.5%interest,which was the interest rate used on the street assessment. In an effort to recover the City's time value of the money expended to place these facilities in 2006,we are recommending that each subsequent year,the$15,000 assessment value be increased by 3%. This is the same inflation factor that has been utilized for several years in the trunk sewer and water assessment rates. In addition to accepting the assessment,anyone wishing to hook up to sewer and water will need to pay a Sewer Availability Charge(SAC)and Water Availability Charge(WAC),as well as physically make the connection from the property line to their home. It would be staff's recommendation that once the City Council has had an opportunity to discuss and review this issue,that an informational mailing detailing all of these issues be sent to each of the property owners along Highland Road. • • Financial impact There is no financial impact as the City Council and Elk River Municipal Utilities have made the decision to expend the monies to extend sanitary sewer and modify the existing water systems along Highland Road. Any financial impact would be in a positive direction if residents decide to hookup and agree to begin paying an assessment for the sanitary sewer and water system. Attachments-None Action Requested Discussion of this issue at a Council level and direction to staff to send an informational mailing to Highland Road residents. Council Action Motion by Second by Vote Follow Up • • S_\EngineerImprovProj\2006 Improvement ProjectAI3ighland Road\08 21 06 cc memo.doc II City Council Minutes Page 10 August 21,2006 • MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO MOVE FORWARD WITH THE TH 169 GEOMETRIC STUDY, MOTION CARRIED 5-0. Councilmember Farber stated he would like federal/state legislators contacted informing them of the issue Elk River is facing and to introduce a bill in order for Elk River to be refunded for this Study. Mayor Klinzing directed staff to discuss with Council how to carry out a lobbying effort for the city. 5.8. Resolution Approving the Plans and Specifications and Ordering the Advertisement for Bids in the Matter of the CSAH Watermain Extension Improvement Mr.Maurer stated the city has agreed to finance the water improvement's and to use future watermain assessments for the repayment for the CSAH 12 improvement. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO ADOPT RESOLUTION 06-101 APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS IN THE MATTER OF THE CSAH 12 WATERMAIN EXTENSION IMPROVEMENT OF 2006.MOTION CARRIED 5-0. 5.9. Consider Agreement for Improvemento County Highway 40 Mr.Maurer stated Sherburne County will be upgrading County Highway 40.He discussed the bids received for the project,the city's cost,and funding sources. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE AGREEMENT FOR THE IMPROVEMENT OF COUNTY ROAD 40 IN THE CITY OF ELK RIVER, MINNESOTA(S.P.71-596-04).MOTION CARRIED 5-0. 5.10. Consider Agreement for Improvement to County Road 33 Mr.Maurer stated Sherburne County will be upgrading County Road 33. He discussed the bids received for the project,the city's cost,and funding sources. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE AGREEMENT FOR THE IMPROVEMENT OP COUNTY ROAD 33 IN THE CITY OF ELK RIVER, MINNESOTA(S.P.71-633-01).MOTION CARRIED 5-0. 5.11. HighlancjSewer and Water Connection Charges, Mr.Maurer reviewed the progress of the Highland Road Improvement.He stated he has - received inquiries from residents regarding the cost of hooking up to city sewer and water. Mr.Maurer recommended the city assess$15,000 for the hookup charge with an inflationary percentage added each year.He reviewed how he arrived at this amount. I City Council Minutes Page 11 August 21,2006 Mr.Maurer stated the Boston/Concord Improvement assessment was required at$17,500 • but the residents in the Highland Improvement would not be required to hookup. Councilmember Farber questioned what would happen if the actual cost came in lower than the estimated. Ms.Johnson stated the city tried to reach a reasonable assessment number.She stated if the number is too low,the city would be subsidizing the project. Councilmember Gumphrey stated the$15,000 was too high for an assessment and it should be Iowered. MOVED BY COUNCILMEMBER GUMPHREY TO RECOMMEND $12,000 BE ASSESSED TO HIGHLAND ROAD IMPROVEMENT RESIDENTS FOR HOOKING UP TO SEWER AND WATER.Motion failed for lack of a second. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO RECOMMEND$15,000 BE ASSESSED TO HIGHLAND ROAD IMPROVEMENT RESIDENTS FOR HOOKING UP TO SEWER AND WATER WITH A THREE PERCENT RATE INCREASE PER YEAR. MOTION CARRIED 34.Councilmember Gumphrey opposed. Councilmember Farber abstained because his property is included in the Highland Road Improvement. • Councilmember Motin stated if the cost is too prohibitive the Council could consider lowering the rate and the residents who paid the higher rate would be reimbursed. 5.12. School Street/Jackson Avenue Intersection Analysis Update Mr.Maurer explained several alternatives for improving the intersection operations at School Street and Jackson Avenue. Councilmember Motin expressed concerns with using MSA funds for this project due to the account being low. Councilmember Dietz questioned if there were other alternatives for funding this project. Ms.Johnson stated the city could use reserves but there is competition for these funds. It was the consensus of the Council to move forward with this project and to have staff bring back more detail regarding costs and to ask the School District for right-of-way for a right turn lane onto School Street. 6.1. Resolution Giving Preliminary Approval for the Issuance of General Obligation Capital Improvement Plan Bonds in an Amount Not to Exceed$5 Million and Adopting the City of Elk River,Minnesota Capital Improvement Plan,Public Hearing Ms.Johnson stated a public hearing is needed to consider the city's Capital Improvement Plan for the purpose of issuing Capital Improvement Bonds for construction of a new • library. She discussed the bond amount and modifications on the Capital Improvement Plan.