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HomeMy WebLinkAbout2004 [12] Dec 16 I I I December 16, 2004 Page 1 of2 Pursuant to due call and notice thereof, the City Council for the City of SI. Joseph met in special session on Thursday, December 16, 2004 at 5:30 DfI,'.,;n the 81. .loseph City Hall Conference Room. Members Present: Mayor Larry Hosch. Councilors AI Rassier, Dale Wick, Ross Rieke. Administrator Judy Weyrens. City Reoresentatives Present: City Engineers Joe Bettendoñ and Tracy Ekola, City Attorney Tom Jovanovich, Bond Counsel Monte Eastvold, Public Works Director Dick Taufen. Others Present: Mayor Elect Richard Carlbom. Utility Extension _ SI. Wendel Area: Mayor Hosch opened the meeting and turned the floor over to City Engineers Joe Bettendoñ and Tracy Ekola. Ekola presented the Council with a map of the SI. Joseph Township Orderly Annexation and a map of the southern portion of SI. Wendel Township. The southern portion of SI. Wendel includes the area known as Pleasant Acres. The map was divided into service areas, maximizing the potential service extensio,,!. Bettendoñ reminded those present that when SI. Joseph purchased additional capacity from SI. Cloud, the purchase included an agreement that if and when SI. Wendel requested services, SI. Joseph would extend both water and sewer services. In exchange for this agreement, the City paid the price of the capacity as it was in 1986, ten cents for every dollar (the project received considerable federal funding). Approximately two years ago SI. Wendel requested extensive information as to whal it would cost to extend services to the Pleasant Acres area. Bettendoñ stated that he and his staff have had a chance review the area and are presenting it to the Council at this time along with probable costs. Ekola stated that if services are extended the following assumptions have been made: 1. The City will require all residents in the affected area to connect to water and sewer services. (Approximately 350 homes) 2. Water (WAC) and Sewer (SAC) Access fees must be paid the same year the project is constructed. This is required to cash flow the improvements. 3. Water and Sewer Access fees musl be increased to cover the cost of the utility line extension. 4. Assessments have not been prepared at this time as it requires a feasibility report and that is costly to complete. SI. Wendel Township will have the opportunity to either hire their own Engineer to complete the study or hire the City Engnieer. For the protection the City, it is in the best interest of the City if the City Engineer completes the Study: NOTE: If the assumptions are not made, the project will not be financially feasible. Ekola presented the following probable costs: 1. 21" Trunk Sanitary Sewer 2. 16" Trunk Water Main $ 1,668,000 749,000 ¡ If the City is to extend water and sewer services to the SI. Wendel area, the City will need to construct the new water filtration plant and begin the process to construct a second water storage facility. The City has been working on the design for the new filtration plant. 'However, if SI. Wendel is to annex, the plant I should be built to handle 2.0 miliion gallons per day, rather than the 1.5 miliion gallons per day that is being designed. ' I Bond Council Monte Eastvold presented the Council with proposed financing options. Due to the amount of funds needed to complete the project, Eastvold is recommending the City consider a twenty-year bond issue. The revenue sources for the bond issue include: utility trunk fees, SAC charges, WAC charges ! and utility rates. Based on the probable costs, the WAC/SAC fees must be increased in 2005 to a 1 minimum of $ 3,000 for water and $ 2,000 for sewer. Weyrens stated that staff discussed the need to I prepare a five-year schedule of proposed fees. Establishing a schedule will notify developers ahead of I time that they can anticipate increasing WAC/SAC fees. The Council agreed that a schedule should be December 16, 2004 Page 2 of 2 determined, but requested that the schedule contain a disclaimer that the proposed fees are only estimates and may be adjusted annually. The Council questioned Bettendorf if the probable assessments have been determined. Bettendorf responded that they have not been prepared but he estimates that the cost of the assessment including street, storm water, water and sewer will be approximately $ 22,000 to $ 25,000. This does not include the WAC/SAC. Adding the proposed fees, the assessment will be somewhere around $ 30,000. Jovanovich stated that when a municipality constructs improvements to a developed area, the ability to justify the benefit to the property owner becomes more difficull. You have an area that already has water and sewer services and those with operating septics and wells will argue the benefil. In addition to showing the benefit, the City must have some assurance that the project is financially feasible. A $ 30,000 assessment may create an undue hardship to some homeowners. I~the homeowners cannot afford to pay the assessment, the City will not receive the revenue. The Council agreed to present the information to SI. Wendel Township and let them make the decision if they want to move forward and start working on an Orderly Annexation Agreemenl. Weyrens stated that Don Adams, Director of Environmental Services, has expressed interest to work with the City of SI. Joseph and SI. Wendel Township. Before the City meets with SI. Wendel, the City Staff would like an opportunity to meet with Adams. Bettendorf recommended that the Steams County Commissioner for SI. Wendel also be involved in the process, to which the Council concurred. Weyrens stated that after City Staff meets with Adams she will report back to the Council and a joint meeting will be scheduled. Adiourn: The meeting was adjoumed by. consensus at 7:15 PM. (/:l!.:.~<4LØ I I I