Minutes - Public Works Committee - 07/16/2002

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Councilmember Hendriksen stated they would do a project that costs $320,000 and collect $56,000. They would be taking about a quarter ora million dollars out of these funds. Principal City Engineer Olson responded the report states the current residents would generate $80,456 if they decide to hook up. If each of the eight groups with three lots split into two lots, 16 hook ups would generate about $160,912. That is not the full potential in that development, each one could subdivide up to three times. Councilmember Hendriksen stated they would still be $90,000 short of getting their money back. Principal City Engineer Olson explained sewer and water together is just over $100,000. Chairperson Zimmerman stated he agrees if they were to take $200,000 off each subdivision it will not be long before a Council says everyone has to hook up and the promises they gave to the people will mean nothing. He stated he needs to hear what the people want, if it is better than 50 percent he will vote for it, if they do not want it he will not vote for it. Mayor Gamec clarified the amount was based on eight property owners rather than the amount of lots. Principal City Engineer Olson explained the $40,000 comes from the amount of $319,000 divided by eight. They have never talked to the people about funding any portion of a storm upgrade from assessments. They are paying storm drainage utility like anyone else. Chairperson Zimmerman expressed concern that if this were to go through and one of the property owners were to sell off one of their lots, the purchaser could refuse to pay the $40,000 to the City. Principal City Engineer Olson responded the residents could not subdivide without hooking up to sewer and water. At the time sewer and water go through they can subdivide into three lots and sell off the other lots. Councilmember Hendriksen stated when plats pay into these various fees, specifically Riley Estates, they as a Council made a decision that they would allow them to spend the amount of money they contribute in sewer and water trunk fees. If it costs more than what they were contributing they had to pick up the difference. Now Principal City Engineer Olson is saying these residents' contribution to the storm water utility fee will be used for $250,000 in sewer and trunk fees. With a fee of $25 per year, that is their contribution for roughly 1,000 years. It is obvious they cannot do this in all the developments they have across the City, and people, will be asking for what they do for this development. Mayor Gamec stated he sees some real benefit, but this area is very unique with their drainage problems. One way or another something will have to be done in this area, whether it is storm srwer, now is the time to look at it or tell the People they are stuck. It comes down to dollars. He asked why the figures are determined with eight lots. Public Works Committee/July 16, 2002 Page 8 of 28