Minutes - Council Work Session - 03/27/2012

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Councilmember McGlone asked what criteria was used to determine the nine "development hotspots" identified on the map. City Engineer Himmer indicated the nine hotspots are consistent with the City's Comprehensive Plan and identified locations in the Highway 10 and 47 corridors, The COR, new areas within the MUSA, and the northeast area even though not currently within the MUSA. Councilmember McGlone stated people in his ward do not want to see a lot of development and would probably not support a sewer extension. City Engineer Himmer explained residents would not pay into the plan if not connected into the system. Councilmember Elvig noted construction of apartments will add to capacity so he is comfortable with a growth rate of 260 units /year if blended over the years. Mayor Ramsey noted the Council's goal was lower charges for big projects. Public Works Director Olson stated staff currently looks at waiting until the SAC determination has been made because it will indicate how much demand is created by the development. Staff is recommending Alternative 2b so people know when "coming in the door" the SAC charge for high versus low density. He noted the City has struggled with extending sewer into this area because of the infrastructure cost to construct the system and this alternative accomplishes the Council's goals to keep development costs at a minimum. City Engineer Himmer indicated the notion is getting fees down for larger, high- density subdivisions, noting the use of 0.7 ERU, means those fees will be less. He explained the 0.7 ERU formula came from Metropolitan Council data and Ramsey's demographics from 2006 to 2010. Public Works Director Olson asked if there is consensus to move forward with this philosophy. Councilmember Elvig asked about residents who want to use their own private water wells. Public Works Director Olson noted when a connection is made to sanitary sewer, connection is to also be made to the water service. He indicated the City has always encouraged use of private wells for lawn sprinkling noting the water rate structure penalizes for higher consumption. Mr. Schunicht explained why it is typical for cities to maintain a fund balance of one year's operating costs. Mayor Ramsey stated his concern that this may result in creating a regional issue and need to build a regional water treatment plant. Councilmember Elvig suggested a parallel study be conducted so the difference between a regional and a City -wide system can be compared. City Council Work Session / March 27, 2012 Page 3 of 5