6.1. SR 09-26-1994
MS
CONSULTING I:NGlNEERS
eNiI ENGINEERING:
ENViRONMENTAL
!v1UNICIPAt
PlANNING
STRUCTURAl
. SUWEYING
HAFFIC
T,W','SPORTATlON
1326 Energy Pork Drive
Sf. Paul, MN 55108
612-644-4389
Fox: 612-644-9446
. 9800 Shelord Parkway
Minneapolis, MN 55441
612-546-0432
Fox: 612-544-6398
ITEM 6.1.
September 23, 1994
File: 230-223-30
Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
RE: WESTERN AREA STORM SEWER
Dear Council Members:
Last Tuesday, September 20, I held a follow-up meeting with the developers of Mississippi
Oaks and Heritage Landing regarding the various issues raised recently about the Western
Area storm sewer. Those in attendance were Richard Kincannon, Dennis Chuba, Gordy and
Erv Moldenhauer, and Ron Black representing the Moldenhauers. The meeting lasted
approximately an hour and a half, and was held at Elk River City Hall.
During the meeting, I explained the items outlined in my memo dated September 19, 1994,
that I had presented to the City Council the previous evening. Those in attendance seemed
only slightly interested in the issues relative to the size and depth of the trunk storm sewer
in Orono Parkway. They were, however, quite interested in the issue of the small portion
of Country Crossings First Addition which drains southerly through Mississippi Oaks to the
Mississippi River. They questioned why they were not made aware during the development
of Mississippi Oaks and Heritage Landing that additional areas north of County Road 30
would be included in the storm sewer flow in the future. It was their understanding that they
paid 100% for that pipe and actually helped the City out by allowing a small portion of
Fresno to be connected into it. We explained to them that 22 % (approximately 25 acres) of
the tributary area for that trunk storm sewer line in Mississippi Oaks had been calculated for
the area north of County Road 30 and that that portion of the cost had been funded by the
City. They referenced to the feasibility studies for Mississippi Oaks and Heritage Landing
which do not clearly spell out that the area north of County Road 30 also included a portion
of the Country Crossings area.
The point that caused the most contention was the method of financing the trunk storm
sewer. After we explained that the City had paid the fair share for the area north of County
Road 30 with the idea of collecting it in the future when that area develops, their concern
turned toward the change in storm sewer financing policy. As you are aware, the Mississippi
Oaks and Heritage Landing developments were assessed 100% of their pro rata share for the
2301223.2301.sep
.
Honorable Mayor and City Council
September 23, 1994
Page Two
trunk storm sewer. With the change in policy to a storm sewer impact fee, Country
Crossings will be charged $100 per lot for their share of the cost to connect into these trunk
lines. This results in a significant difference between the amounts of monies paid for trunk
storm sewer on each development. We tried to explain that neither Mississippi Oaks nor
Heritage Landing are at a competitive disadvantage because there have been other changes
in policy which adversely affect Country Crossings. These would include the assessment of
$30 per foot for Orono Parkway which is outside the plat boundary, and 100% of the cost
of street and storm sewer for Joplin between County Road 30 and Orono Parkway. I
attempted to go through an analysis of the cost for each plat divided by the number of lots
as presented in my letter of Septemb~_. I believe that the participants at the meeting
understood what the outcome of that would be and were not interested in hearing that entire
analysis.
.
At the close of the meeting, I agreed to prepare a letter for Ron Black on Mississippi Oaks
and for Denny Chuba on Heritage Landing that would spell out the construction costs for
each of their developments versus Country Crossings. This, of course, will not be able to
factor in the cost of the land nor the time value of the money they needed to borrow to do
their developments. It will, however, give them an "apples to apples" comparison of the
construction costs each development is paying for utilities and streets. These comparisons
will be put together and mailed to the parties early next week.
At the close of the meeting, I specifically asked those in attendance if my perception that all
issues were resolved with the exception of the method of fmancing storm sewer. They all
agreed that that was true. Their major concern, once again, was their feeling that they were
being treated unfairly in having paid 100% assessment for storm sewer while Country
Crossings would benefit from the change in policy and only pay a storm sewer impact fee.
I suggested to them that they could submit a letter to the City questioning this policy, and
it could then be brought forward to the City Council for their consideration. At this point
in the meeting, Pat Klaers,City Administrator, had stepped into the room. I believe that he
and I made it clear that even though they could make a request to the City Council for
consideration, staffs position would likely be to recommend against a retroactive
interpretation of the storm sewer policy.
If you have any questions or comments regarding this information, please give me a call.
Sincerely,
.
MSA, CONSULTING ENGINEERS
~}l~/
Terry T.Maurer, P.E.
TJM:tw
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