Minutes - Council - 02/06/2012 - Special

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COUNCIL BUSINESS 4.1 Discuss Updates to the City's Comprehensive Sanitary Sewer and Water Plans City Engineer Himmer presented the staff report. In August 2011, staff met with the City Council in work session to review the City's 2011 development cost study. In November 2011, the topic of comprehensive utility plan updates and corresponding rate studies were discussed by, the Public Works Committee. Council wanted to understand how updates to these plans may impact adoption of the City's annual rates and charges and wanted to wait to deal with adopting the rates and charges for 2012 until these utility plan updates were completed. The rates and charges were adopted in December 2011, with the idea that the utility fees could be revised if necessary once the studies were updated and the results of the rate study completed. In January 2012, the Council awarded contracts to Bolton & Menk and Landform to undertake this study, which was last completed in 2004. He noted Greg from Bolton & Menk was present as well. Mr. Himmer explained that the first order of business is to review growth projections,. which is the focus of this case. Without first understanding the assumptions related to how the City intends to grow, updates to these plans are extremely difficult. We would not be able to look into infrastructure needs of the future and associated costs if we have no clear direction on how the Council believes the City will grow. Therefore, staff is looking for direction on what assumptions should be used to calculate fixture growth in the City. He reported that since Ramsey has not realized growth consistent with either the 2030 Comp Plan, which showed an average of 455 units built per year through 2030, or the 2004 Comprehensive Utility Plans which showed an average of 360 units per year through 2020, any revisions to growth projections would affect the amount of service connections — users and ultimately rates and fees. Mr. Himmer stated that another focus is density assumptions. Understanding where more dense growth will happen assists in developing a plan for appropriate sized and located infrastructure. It allows us to implement a program that will fund capital expenditures only where they are needed, and eliminates the potential for unnecessary extensions and/or over sizing. Mr. Himmer reiterated that staff is only seeking direction from Council on where they see City growth in the future for this phase. He noted that during the development and review process for the 2030 Comp Plan Update, concerns were raised by several individuals regarding the forecasts. The forecasts showed that all future growth outlined, which was outlined on a "Future Land Use Map" presented to the Council this evening, could occur by 2030; however, based on current market conditions, it seems unlikely that would be a reality. He noted a few assumptions in the City's existing 2030 Comp Plan deserve discussion. Due to the nature of soils in the City, rural residential development can be supported indefinitely with on -site sewage treatment systems, provided sufficient land is available to accommodate two drain fields. Ultimately, such areas may require public water service. He stated the discussion should be does Council still agree with this assumption. Should there be some investment made for infrastructure expansion to /through these rural areas, or does Council still consider these large lot rural areas as a mainstay in the City. Considerations still need to be factored in for ultimate water distribution into these areas in case groundwater supplies become compromised, or future municipal source wells are restricted. Two keys to future growth — northwest Ramsey will not be allowed to connect to Elk River's public utility systems and metropolitan sewers will not be extended northerly through Ramsey to provide services to the City of Nowthen. He noted that might not be a choice we have — and saying "never" is a pretty firm stance. He inquired if Council wants City Council — Special Meeting — February 6, 2012 Page 2 of 11