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option extension to the northeast area; Alternative 2a for a lift station and forcemain extension to <br />the northeast area; Alternative lb for a gravity sewer extension to the northeast area with 0.7 <br />ERU for high- density residential connection; and, Alternative 2b for a lift station and forcemain <br />extension to the northeast area and 0.7 ERU for high- density residential connection. <br />Public Works Director Olson stated staff recommends Alternative 2b, lift station and allowing a <br />high- density option. He explained that lift stations have higher operational expense and potential <br />for backing up or power failures but the City has procedures in place to assure sewage does not <br />back up. It is expected a lift station would last for 10 -15 years until the northeast area is <br />developed. Public Works Director Olson indicated staff thinks Alternative 2b is a reasonable <br />solution to all goals mentioned by the Council and noted that a gravity system is more <br />sustainable, keeps costs down, provides service, and grows as the user base grows. <br />Councilmember Wise asked about the expense for lift maintenance and if enough funding has <br />been built in for maintenance of the lift stations. <br />Public Works Director Olson estimated $60 -$70 /month for electricity plus manpower needs for <br />maintenance (cleaning once /3 months and yearly inspection). He noted the City can fund a lot of <br />monthly charges to care for equipment with $1.3 million. <br />Mayor Ramsey noted there would be capital costs to do the project in addition to maintenance <br />costs and asked whether a comparison was done for maintaining the lift station over 20 years to <br />determine if it is cost effective. <br />Public Works Director Olson stated it will not cost $1 3 million to power and maintain a lift <br />station over 20 years, estimating it would cost $150,000 over 20 years. <br />Councilmember Elvig asked if new construction should fund infrastructure or existing residents <br />pay for it plus user fees down the road. <br />Mayor Ramsey noted if the overall cost to develop a home is lower on the front end, they would <br />realize a savings, maybe a bigger house, and build tax base. <br />Councilmember Wise pointed out the basis of the study is a growth rate of 260 units /year and <br />indicated it appears to be an aggressive growth rate. <br />Public Works Director Olson stated that is correct, noting the Council had debated that issue for <br />two hours at a previous meeting. <br />Mayor Ryan indicated that number is amortized over a number of years. <br />Robert Schunicht, Landform, explained that if the growth rates slow, then expenditures also <br />slow. Also, it is recommended to have a fund balance equal to expenditures for a year to take up <br />fluctuation in growth rates. Mr. Schunicht advised this is conservative /typical approach to this <br />type of system. <br />City Council Work Session / March 27, 2012 <br />Page 2 of 5 <br />