10.3 SR 10-05-2020Request for Action
To
Item Number
Mayor and City Council
10.3
Agenda Section
Meeting Date
Prepared by
Work Session
October 5, 2020
Suzanne Fischer, Community Development Director
Item Description
Reviewed by
Ordinance Amending Chapter 78 Authorizing
Peter Beck, City Attorney
Loans for Repair or Replacement of Private
Reviewed by
Subsurface Sewage Treatment Systems
Cal Portner, City Administrator
Action Requested
Review an ordinance authorizing loans for the repair or replacement of private subsurface sewer treatment
systems.
Background/Discussion
At the Sept. 21, 2020, meeting, Council approved participation in the AgBMP Loan Program. The purpose is to
encourage best management practices to prevent or reduce runoff and pollution from various sources, including
cluster septic systems.
As you recall, the Rolling Hills HOA approached the city earlier this year for assistance with their failing SSTS.
The proposed amendment would allow the city to act as a `lender' of the Ag BMP Program and provide low -
interest loans to the residents to repair/replace their cluster system.
Field data and project costs are being finalized to determine the assessment amount for each of the 28
homeowners. The loans are for a 10-year period with an interest rate of 1.5%.
The City of Elk River has numerous cluster systems in their service area. Preferably, other cluster developments
too far out to connect to our infrastructure, would also utilize this program.
Financial Impact
N/A
Mission/Policy/Goal
The Elk River Mission Statement cites working with citizens to develop a sustainable and prosperous community
for all to live, work and play.
Attachments
■ Amended Ordinance 78 to authorize loans for the repair or replacement of private SSTS's
Map of SSTS cluster developments
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires pi ospei ly.
M
TUREJ
Updated.• August 2020
10.5.2020
10.3 atl
CITY COUNCIL
CITY OF ELK RIVER
ORDINANCE NO. 20-
AN ORDINANCE AMENDING CHAPTER 78 OF THE CITY OF ELK RIVER CITY
CODE TO AUTHORIZE LOANS FOR THE REPAIR OR REPLACEMENT OF
PRIVATE SUBSURFACE SEWAGE TREATMENT SYSTEMS
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. That Chapter 78 of the City of Elk River Code of Ordinances shall be amended to add
new Section 78-6, as follows:
Section 78-6 — Loans for the repair or replacement of private subsurface sewage
treatment systems.
(a) Public health and safety ha.Zaid. The City Council finds that private subsurface
sewage treatment systems, which do not meet the requirements of state law, including
Minnesota Statutes, Section 115.55 and Minnesota Rules promulgated thereunder, or
Section 17.5 of the Sherburne County Zoning Ordinance, create a public health and
safety hazard on private property which must be eliminated.
(a) Loans author*.Zed. The City Council, in its sole discretion, may establish a
subsurface sewage treatment system loan program pursuant to Minnesota Statutes,
Section 115.57, or the City may participate in state funded loan programs, such as that
authorized by Minnesota Statutes, Section 17.117. If a City loan program is
established, it shall be administered by the City Administrator pursuant to policies
adopted or direction given by the City Council.
(a) Assessments author*.Zed. Loans made by the City for the repair or replacement
of private subsurface sewage treatment systems shall be secured by assessments levied
against the properties served by systems repaired or replaced, as authorized by state
law and City Policy. Such assessments may be prepaid at any time.
(a) Petition required.
(i) Prior to making a loan for the repair or replacement of a private
subsurface sewage treatment system, the City shall receive a signed petition, in the
form required by the City in its sole discretion, from the owner of each property
to be served by the repaired or replaced system, requesting that the loan be made
and that to secure payment of the loan the owner's property be assessed in the
amount of that property's share of the total cost of the repair or replacement.
(ii) Alternatively, if a signed petition is not received by one or more property
to be served by a repaired or replaced system, the City Council may, in its sole
discretion, proceed with a loan program to repair or replace the system and assess
the loan amount to the properties for which a petition has not been received
pursuant to Minnesota Statutes, Section 429.101. All costs incurred by the City to
levy assessment pursuant to Section 429.101 shall be added to the project cost
and the loan amount.
Section 2. That this Ordinance shall take effect upon adoption and be published as required
[provided] by law.
Passed and adopted by the City Council of the City of Elk River this 5Ih day of October 2020.
ATTEST:
Tina Allard
City Clerk
John J. Dietz
Mayor
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