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7.4. SR 02-01-1993 ITEM 7.4. TO: MAYOR AND CITY COUNCIL FROM: PATRICK KLAERS, CITY AD~~TOR JANUARY 28, 1993 ~ MUNICIPAL UTILITY NEEDS DATE: SUBJECT: INTRODUCTION The City Council and the Utilities Commission are partners in planning the future growth of the community. In order for the area around the Highway 169 and 193rd intersection to develop in an urban manner as outlined in the City Growth Management Plan, municipal utilities need to be provided by both the City and the Utilities Commission. BACKGROUND . When the Deerfield III subdivision pulled municipal sewer into this vicinity, the City did not have a comprehensive plan and, unfortunately, the sewer pipes were not sized for growth beyond the immediate Deerfield area. Property to the north and to the east of the Deerfield area was incorporated into the urban development district with the adoption of the Growth Management Plan in 1988. A need for a water tower in this high pressure zone was identified in the 1982 Water Comprehensive Plan. Additionally, an area-wide feasibility study in February, 1992, for this Highway 169/193rd Avenue vicinity indicated that a well and water tower were required in order to have this area fully develop in an urban manner. This February, 1992, study also pipes in this vicinity were municipal sewer services and, as had to take place in order for manner. stated that the existing sewer not adequate to provide future such, a major line extension the area to develop in an urban MUNICIPAL SEWER . According to the February, 1992, study, the sewer capacity to service this area has to come from the incepter near School Street/Freeport Avenue to the north and then across Highway 169 to the northeast. Providing sewer capacity requires the extension of trunk lines and the assessment of these trunk lines to benefitted property owners. In order to service the Specht property on the east side of Highway 169, a trunk sewer assessment project has to happen on the west and east sides of Highway 169. Without this sewer extension, growth and development in the Specht property cannot take place in an urban manner. Extension of lines into this area can happen 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 Municipal Utility Needs January 28, 1993 Page 2 . within one construction season. Municipal sewer service in this area is anticipated to be needed in the near future. MUNICIPAL WATER The water tower and well in the high pressure zone have been a topic of conversation for about one year, ever since the February, 1992, feasibility study for this area was completed. The providing of municipal water utilities in this area is more complicated and takes more time for construction than the sewer utilities. It appears that it is now time to begin work on a water system (tower and well) based on the residential and commercial development proposals that are being reviewed. Earlier this week, the City staff had a concept review for a residential development proposal near the MnDOT property. It is possible that this 40 home subdivision can be provided with municipal sewer capacity, but it was very questionable whether or not municipal water (water pressure) is available. In 1992, a commercial plat was denied in the southeast corner of Highway 169 and 193rd Avenue due to no municipal utilities being available. . A water tower needs a m1n1mum of twelve months and may take up to 18 months to be completed and on the system. If the City and the Utilities do not soon move forward in planning for a water tower, then it does not appear that any development in this area will be able to be serviced by municipal water in 1994. A well is less urgent at this time than a water tower because a water tower, once completed, can have water provided through pumping from another water source. Accordingly, the critical utility in order to provide adequate municipal services in this vicinity in 1994 is the water tower. The reason starting action on a tower is critical at this time is due to the lengthy construction time frame. . The financing of the well and tower are still uncertain and must be a topic for a joint meeting. The staffs have briefly reviewed this issue at a meeting earlier in the week. It is anticipated that part of the expenses for a tower will be financed by the commercial developers in the vicinity. This concept is based on the assumption that the water tower will have to be somewhat larger or taller in order to meet the water needs for the commercial users. The City or the Utilities could request an escrow from the commercial land owners in order to move forward with the plans and specifications for a water tower or the City or Utilities could simply put these land owners on notice that it is anticipated that they will be asked to pay for some the costs associated with the water tower project. If this is the case, the water Utility (or City) will have to pay for the water tower plans and specifications if this moves forward at this time. . . . Municipal Utility Needs January 28, 1993 Page 3 JOINT COUNCIL/COMMISSION MEETING The City Council and the Utilities Commission need to get together to discuss the need for a water tower and well in the high pressure zone of the City and how the well and water tower will be financed. This topic was discussed at the last joint meeting held on June 29, 1992. There are other issues that currently need to be discussed by the City Council and the Utilities Commission, but the need for a well and a tower in the high pressure zone is the most urgent and will necessitate a meeting very soon. (A follow-up meeting will be appropriate in order to discuss some of the other joint issues such as garbage billing and the waste water treatment plant expansion for urban services to the east Highway 10 area). ACTION REQUESTED This issue is on the agenda for discussion by the City Council as the Utility Commission has its next meeting scheduled for February 9, 1993. In this regard, if any action is taken by the City Council, it can be forwarded to the Utility Commission for its review and consideration. The City Council could consider asking the Utilities Commission to join them at the 6:00 p.m. February 15, 1993, CIP meeting and have the utilities in this vicinity, and specifically the water tower, as the first agenda topic for discussion at this meeting. If the Council would like to first discuss development in this area in relationship to all the other desired capital improvements in the community, then a joing meeting should be scheduled in the later part of February. At this time, it may be appropriate for the City Council to request that the Utilities Commission evaluate authorizing the preparation of plans and specifications for a water tower. This action, if it takes place by the Utilities Commission, may also have to be authorized by the City Council if the City is going to end up issuing revenue bonds for this project that would ultimately be repaid in part with water utility revenues.