Agenda - Council - 06/10/2003 - Laserfiche WebLink

Home

Mayor Gamec stated he has two major concerns. Number one is that personally he does not care if people want this or do not want it, if they could they would give it to the people that want it. His major concern is that the whole City does not have to pick up the cost. They need to determine if' there would be enough payment with the people that would hook up ri~ht away. The City will pick up the cost on the bonding and when someone' hooks up it would be used to pay off on the bond. They have to protect the whole City's interest in the cost of this particular project. He questioned if they would still be in good shape with bonding and other developments aft:er five to seven years, and would not need to put them through the General Fund. Chairperson Zimmerman stated they must get the support of the people if they are going to run sewer and water into an area, if people are not going to hook up there is no point. Mayor Gamec stated they did not do some projects because they were not feasible cost wise. He has also heard people who said they would never want water, then saying it will cost them $12,000 to put in new septic system and it may be time to hook up. The other issue to address is if there is any idea of the septic tank failure rate in that area. His number one concern, however, is the cost factor to the whole City. Principal City En~neer Olson explained they would not have to bond for the money, they have the dedicated fund now t'or trunk and lateral fees and would utilize that money until they are reimbursed on hook up. Councilmember Hendriksen stated the only way to be absolutely sure the majority c~f residents wilt not be burdened with the costs is if there are enough people to make this financing feasible, they must have the overwhelming majority. The project across the street caused the charter amendment. When they analyzed the cost of t hat, t hey d id not collect t he a mount t hey w ere intending to assess, however, it covered the cost of that project. The City was not out any dollars for having done that project except for overhead. The point is that at some point you cover your actual costs and they will not know that until they see who is in support. Councilmember Anderson stated there is concern if the street already has to be tom up and they have to do it again later to install sewer and water. Another question was the expectation of the number of these, people was that they were going to be able to subdivide and sewer and water was coming in. Apparently, the residents at some time decided they did not want that after all. Mayor Gamec stated this is one of the most confused areas in the City. Principal City En~neer Olson explained this feasibility study was ordered because of concern from the neighborhood, there was not a petition so they cannot tell the support other than a show of hands and a public hearing. Mayor Gamec stated they need to know who wants this and people would be able to determine this better if they had the dollar figures in front of them. Even though, they do not need to hook up immediately they would Want to know in the future. Principal City Engineer Olson explained they have taken the assessment for sewer and water out of the figures, as the charter says they cannot assess for sewer and water. The assessment is not i I I I I I I I I I I I I I I I I I