01-21-97 WSCITY OF OTSEGO
CITY COUNCIL WORKSHOP
COMPREHENSIVE PLAN/SANITARY SEWER STUDY
OTSEGO CITY HALL
JANUARY 21, 1997
7:30 PM
1 _ Call to order_
Mayor Fournier called the Workshop to order at 7:30 PM.
Roll Call: Mayor Larry Fournier; Councilmembers: Suzanne Ackerman, Mark Berning,
Vern Heidner and Virginia Wendel.
Staff: David Licht, City Planner, Bob Kinnis, Assistant Planner, Alan Brixius, NAC,
Larry Koshak, City Engineer; Elaine Beatty, City Clerk/Zoning Administrator; Judy
Hudson, Deputy Clerk. Arriving later was the City Attorney, Andrew MacArthur.
I Meeting Objective - Mayor Fournier.
Mayor Fournier explained this Workshop is to discuss the Comprehensive Plan and the
Sewer Study. The Council will receive and review information presented. No decisions
will be made at this Workshop but at a future City Council Meeting. The Mayor explained
that no public comment will be received at this workshop.
3. Video
David Licht introduced the video which was recently aired on Channel 11.
The video presented the problem with individual septic/drainfelds, especially the older
ones. Interviews were conducted with installers and a representative from the Minnesota
Extension Service (University of MN). According to the video one out of four homes in
MN have individual septic systems and it is believed that seven out of ten systems fail to
provide treatment. One to two billion dollars is estimated for the clean up of failing
systems. Education is needed for the homeowners in the care of their septics.
4. Comprehensive Plan - Tactics Study - David LichtfRob Kirmis_
Mr. Licht gave a perspective of where the City is at currently and how the City got here.
The decision back in the 1960s and 1970s was to allow urban development and now the
City is facing the repercussions.
1. The lack of attention to the Stormwater drainage.
2. Septic systems.
Mr. Licht reviewed the Comprehensive Plan done in 1990. The Land Use Plan
(Overhead Exhibit A), showing the Immediate Service Area, Long Range Urban Service
Area and the Rural Service Area. The philosophy then, was to fill in the ISA first. This
was under the assumption that sewer would be available from Elk River if needed.
Mr. Licht displayed the existing Land Use Plan (attached) and an overhead of the failed
septic systems in Otsego from 1991 (attached). The failed systems displayed are just the
City Council Workshop January 21, 1997, cont'd. Page 2.
systems of which the City is aware of. Also displayed was an overhead (attached) of the
ages of the subdivisions in Otsego, which is a primary concern.
Mr. Licht also discussed the Rural Service Area, particularly the area around the City of
Albertville. The current Comprehensive Plan designates this area to be held off for
development. Two items to be noted in this respect:
1. The push for development hasn't taken place in this area.
2. If the City starts to spread, you would be creating a problem with regards
to the financial capability of providing sewer if problems start occurring.
Six months ago, the City Council authorized a Comprehensive Plan Update the reason
being is the issue of sewer the City is facing now. Mr. Licht reported from the tactics
interviews held in November, there was strong support for a sewer system but not because
of a pollution standpoint but from an economical standpoint.
The Land Use breakdown was reviewed (attached).
The major concern expressed was the cost. From a professional standpoint, his office is
concerned with the economics also but he sees a potential future pollution issue which
could be an astronomical cost. The potential pollution problem is out there and Mr. Licht
wants to address the approach which was the balance of discussion at this workshop.
a. Differing Systems
Larry Koshak reviewed the Wastewater Treatment Options.
He started out explaining the major pollutants in domestic wastewater (see attached). The
need is to control the fecal coliform that represents viruses and disease carrying
microcosms in the sewage. Mr. Koshak explained the Crow River standards for discharge
of pollutants (attached). It was stressed the Mississippi River has different standards and
is designated as an Outstanding Resource Waterway and discharge is only permitted when
there is no other prudent and feasible alternative. It was Mr. Koshak's opinion that
obtaining a discharge permit to the Mississippi for a new facility would be very difficult.
The septic/drainfields do not even do a 50% reduction of what the City is trying to
accomplish and these pollutants discussed here are going into the ground water and
eventually with concentration of one acre lots there will be a build up and will affect the
ground water.
Mr. Koshak reviewed the Wastewater Treatment Options - Systems (attached) The
combinations of these shown on the attached can provide a facility to meet the needs.
Package Plants (attached)
A prefabricated treatment plant built to accommodate speck flows and a pollution
reduction goal. The capacity is from 20,000 gpd to 250,000 gpd.
City Council Workshop January 21, 1997, cont'd. Page 3.
States like Minnesota bring added costs since housing has to be built for cold weather.
Package plants are seldom used for municipal facilities in this state. If the purpose if for
the short term, than the Package Plant would be an option.
City Engineer's Wastewater Treatment Recommendation
According to Mr. Koshak, the most positive treated wastewater discharge location, at this
time, is the Crow River. The most expandable method is the biological physical method
using the Activated Sludge process. Land appears to be available for expansion of the
proposed site in the southeast area of the City. The exact location depends on the
availability of land and public perception of the location.
Discharge permit to the Mississippi River may not be available if the Crow River is an
option for the City.
Mr. Koshak recommended the Bonestroo Report, along with any other viable treatment
options, should be presented to the public at the information meeting. He also
recommended if the Bonestroo Report is the choice of the City, then the report should be
officially accepted and a more detailed facilities plan prepared based on the revised
Comprehensive Plan.
If the Bonestroo report is not acceptable, then the City should conclude the agreement
with Dayton and Bonestroo.
Mr. Koshak went through an overhead (attached) of a processing schematic for a simple,
small plant.
The engineer also showed pictures of the Rogers and Becker Treatment Systems. The
plants for these two cities started out with the cheapest, easiest plants with ponding
systems. They have both expanded and converted two to three times to get where they
are at presently but still have the ponds.
Mr. Koshak recommends, for the long range sewage service, to start with planning for a
long time period. He feels the best option is what was recommended in the Bonestroo
Report - start out with Activated Sludge Treatment. There may be limitations with
respect to financing which could lead to another option. There are a lot of options to look
at, but he believes that between himself and Bonestroo, they have eliminated a lot of
systems that the Council has had questions on because of the engineers past experience
they are not in the best interests of the City.
Larry also reviewed briefly, a conceptual water system his firm put together (attached).
An estimated cost for Phase 1, around one million dollars. Estimated 920 RSCS. for
Phase 1.
CM Berning asked if there can be residential hookups without putting up a tower.
Mr. Koshak responded that a second customer hookup would need to have the well
pressurized with a pump house but with enough customers hooking up the City would
want to put up a tower. The cost of a pump house would run about $75,000.
City Council Workshop January 21, 1997, cont'd. Page 4.
Mayor Fournier asked if expanded discharge to the Mississippi is a possibility with an
existing plant already discharging there.
Mr. Koshak stated he doubted, for example, if the Darkenwalds would get an expansion to
their treatment facility. Otsego has other discharge alternatives (Crow River).
Finding a positive place to discharge is the most critical factor in finding a wastewater
treatment site.
There was further discussion of discharging to the Crow River in regards to dry season
and discharge regulations.
CM Wendel commented that through the recent consolidation meetings, a member of the
Municipal Board thought it was ridiculous for each separate community to have separate
plants.
Mr. Koshak explained this was the reason the Bonestroo Report included Otsego, Dayton
and Frankfort and discussed future districts.
Mr. Licht briefly discussed potential sharing with the City of Albertville but at this time it
is probably premature. They are having problems getting service to the northern area of
the City. But, Mr. Licht said, this is a point well taken and should look to Albertville.
CM Berning asked if Otsego has any other discharge options other than the Crow River.
Mr. Koshak explained the Otsego Creek Flow is way too low for discharge. The Lefebvre
Creek can also be dry at times. Another issue would be discharge onto the land. If the
City had soils throughout like in the northeast corner, than an irrigation option would be
very viable.
6. Elk River Sewer Service Option Status - Mayor Fournier.
Mayor Fournier reported on the January 16, 1997 meeting that he attended along with
Elaine Beatty City Clerk/Zoning Administrator for Otsego and Otsego's CM Heidner;
Lori Johnson, Elk River's Assistant Administrator and Pat Klaers, Elk River's City
Administrator and Elk River's Mayor, Hank Duitsman. Mayor Fournier explained that he
and Mayor Duitsman met in December and briefly discussed the consolidation of the two
cities. They decided they needed to talk to their respective council members. On January
16 when they met, Mayor Duitsman still supported the consolidation. Mayor Fournier
expressed at this meeting that sharing of services would be a first step, such as police, fire,
public works projects and the real interest of sewer and how much capacity Elk River has.
They discussed the plant. Last summer, Elk River doubled their capacity to 2.2 million
gallons per day and they are now using .S millions gpd. If Elk River should develop
entirely, they would use their entire capacity. Mayor Duitsman said the plant wasn't
intended to sewer their entire city. He expressed they are open to sharing sewer and are
willing to have the engineer look into this and they need information from Otsego's
engineer to proceed.
The last time this was looked into, their capacity was used up and they had to pass Otsego
up. It may be too expensive and sludge may be a problem and a problem providing sewer
to area that would be in direct competition with Elk River. Another thought was doing a
City Council Workshop January 21, 1997, cont'd. Page 5.
sewer district. It was decided, according to Mayor Fournier, that both councils would
meet in April, after a review and study.
Larry Koshak asked if Elk River indicated how much capacity would be available.
CM Heidner said they talked about 350,000 gallons. Mr. Koshak replied that might meet
Otsego's goals for ten years.
CM Heidner expressed Elk River is very concerned with the competition and they would
be happy if we zoned the area for light industrial. Commercial is of great concern.
Elaine Beatty said Elk River needs industrial and they view that as sharing.
CM Heidner also said Otsego offered to look at joint planning for both cities.
CM Wendel was concerned with two counties being involved.
David Licht replied two counties can complicate matters but it is not impossible as this
situation exists in other places.
Mayor Fournier explained they told Elk River that Otsego would want residential, light
industrial, industrial and commercial and that it would be an interim system. Time periods
were not discussed. Mayor Duitsman will also present this to his council.
CM Heidner was concern with any ramifications to Otsego.
Mr. Koshak could see doing this if Otsego builds what Bonestroo is proposing with a lift
station on the corner of 42 and 101 and a plant in the southeast corner. Just reverse the
force main and the one to Elk River would be abandoned. There would be a metering
station, two pipes, a sampling station etc.
CM Heidner suggested it would be best to wait to hear from Elk River and their Engineer
and then Otsego would be able to determine what costs would be involved.
Larry Koshak agreed they need to provide information and Otsego could then relate that
information to what is in the Bonestroo Study. But, he said Otsego still needs to do trunk
study and back up with Comprehensive Plan and to identify the area to be served.
David Licht said Otsego is not out of date in terms of the Bonestroo Report because the
long range expansion area is where the sewer would be directed. The idea, he said, is not
to force sewer into platted areas but into new development. But, he cautioned, the platted
area has potential problems and availability has to be there. Mr. Licht advised the Council
to get the 101 corridor as a good tax base and west of 42 to go into residential
developments which will help pay for the system.
CM Berning asked if there would be two hookup charges - one with Elk River and then
one with Otsego.
Larry Koshak suggested Otsego should bank the fees and apply them when hookups occur
with Otsego.
David Licht said the whole financing issue has to be look at very seriously.
Alan Brixius responded to some impacts Otsego can anticipate and concerns to be
addressed in the overall consideration of the sewer plant.
1. Serious concern of concentration of one acre with septic systems and
potential failure.
City Council Workshop January 21, 1997, contd. Page 6.
How and when can the City respond to them. Only through planning
can Otsego be prepared.
2. Economic Development. Currently Otsego's land uses consist primarily
of single family owner/occupied home - therefore you have land use that
generates the greatest service requirements but generates the lowest amount of
tax rate. Otsego needs diversified tax base.
3. Does Otsego continue with one acre lots arrangements.
4. Priority established by the City is to allow those who benefit from the sewer
pay for it. Reduce the exposure to non-users as much as possible.
Bonestroo recommended for the southeast provision and the City Engineer has identified a
two phase approach. (attached).
Phase 1 is the priority area, bringing sewer closer to the existing unsewered areas, provide
an area along 101 for economic development and also provide new land for new growth
to help for the system.
In conjunction with this a conceptual land use plan was prepared with a diversity of land
uses (attached) ranging from single family residential to commercial areas at the major
intersections and light industrial along 101. This is looking at urban densities of 12,000
square foot lots for single family homes, commercial and industrial land uses that would be
a full range of those uses not limited. Looking at being very aggressive in promoting full
range to diversify the tax base and to increase employment opportunities in the City.
Otsego faces many issues:
1. City wide basis. Sewer and water will change the character dramatically.
Land area is short in the metropolitan area. Wright and Sherburne Counties are
fast growing. Decision has impact on rate of growth and type of growth and
tax diversity. In preparing for this, Otsego must have this understanding -
growth costs more from the standpoint of providing utilities and delivering and
expanding services. It is important to maintain a balance between the rate of
growth and service delivery.
Concern: Debt, financing or borrowing is guaranteed by the City. Mr. Brixius
cautioned that, frequently, once debt is acquired, there is a tendency to push
development fast to try and pay off debt, not recognizing the service impact might
be elsewhere as part of tax arrangements.
Utility development will allow city to pursue a broader range of development -
commercial, industrial economizing on land purchase (smaller sites, land efficiency)
The city will need to go out and pursue this economic development.
Another element is alternate housing styles.
Service Area Impacts: Proximity to these areas will give the City the opportunity
to bring service into those areas, if needed.
Raw Land Prices: (attached)
Showed increased land values for land with utility availability.
Protections for property owners within the service area.
City Council Workshop January 21, 1997, cont'd. Page 7.
Green Acres Program, available through Wright County
Allows for Ag land to be continue to be taxed as agriculture
defer assessments but property owner will pay assessments
at the time this status is removed.
State Ag Preservation Program. Allows for waiving assessments
until such time the Ag Preservation is removed but ties land up
for eight years before it can be developed.
The Sewer Plant is good for 50 years. Standards for septic systems are 25 years. Since
the Point of Sale Ordinance has gone in, 60% of those inspected have had replacements.
Therefore, when looking at septic systems a person must not only look at the initial
investment but also the replacement costs. Another element for septic systems is the
potential area wide pollution. Mr. Brixius reported the City is currently monitoring this
through the wells.
Financing Elements:
1. The ability to have a shared system is desirable. Bonestroo shows this
with sharing with Dayton.
2. Look at service areas (attached) could consider area assessments
to land ultimately receiving benefit
3. Urban/Rural Taxing District. Consider amending to incorporate those
areas that are just in the service area.
4. Connection and User Fees.
Mobile Home Park should be excluded from Bonestroo Report.
Bonestroo Report is based on 75% of projected growth, which
gives the City some leeway.
5. SAC and WAC Charges. (attached) Otsego will be the highest.
In conclusion, as far as financing, the City needs to understand the risks of borrowing.
A caution in paying off the bonded debt or loan debt, a lot of communities want to
accelerate the rate of growth without recognizing the impact on other services. Best
protection is to look at diversification of the financing, whether its taxing jurisdiction or
area assessment or just paying through SAC charges. Needs to look at these to reduce the
risk in the event the SAC charges do not meet the debt payments.
CM Wendel asked if there were any grants available.
Mr. Brixius replied that right now what is available is MPCA low interest loans.
He noted what is favorable is having a joint or shared system which strengthens the City's
position.
CM Berning if the amended 1974 Clean Water Act helps the City out, feeling the
amendment was to prevent further problems.
Mr. Koshak commented that funding for water systems the city would have to establish a
problem and the city could be eligible and this should be looked into. If there is any
City Council Workshop January 21, 1997, contd. Page 8.
establishment of deterioration of ground water that can be proven (reason for monitoring
wells). The wells will be tested this week. If a pattern can be established and any wells
that are bad now would certainly support an application for a water system. If there is a
support for a water system that also helps for a sewer system.
City Attorney arrived.
David Licht noted staff recognizes the decision is on the table. What was provided at this
workshop was basic information. Mr. Licht said that from his position he feels the
decision was made a long time ago that at some point in time this city will need sewer.
The question is not if but when and it must be planned for.
Another concern, given the lack of decision of whether or not there is going to be sewer
and water, he has concerns with decisions being made. He is suggesting a platting
moratorium with no further subdivision (with exception of agricultural purposes or
commercial/industrial land) until the City knows the direction they are going to go.
He feels that every decision being made is potentially working against the long term
objective.
Another point Mr. Licht went over was fairness to everyone - landowners, city council,
staff - his staff, as part of the tactics study, suggested the council establishes a decision
deadline. He stressed if the deadline keeps getting pushed out, a decision will never be
made.
Another comment Mr. Licht made was if the decision is not to go with sewer and water
the public needs to be fully aware that decision will not be a cost-free one. There will
need to be serious responsibility of maintaining septic systems i.e. mandatory pumping, not
adding to any potential pollution problems.
Mr. Licht stated the Council is at a critical point regardless of the direction they take and
once again urged the council to do a platting moratorium and set a deadline.
CM Wendel asked if he was suggesting a moratorium for the whole city.
Mr. Licht replied yes for the whole city and stop everything now. For every piece of
property the council adds as subdivision in the western end of the City and if the Council
decides to pursue sewer that would take away from the market and viability to pay for the
system. The Council creates the market and directs where it goes.
Mayor Fournier stated he views this subject as very critical and sees a moratorium
appropriate until a decision is made and also supports a decision deadline.
CM Ackerman also sees a need for a moratorium.
CM Wendel would probably support a moratorium for the eastern side of the City but
expressed concern putting it on for the whole City.
CM Berning commented the moratorium should have gone on when Elk River said no the
first time around.
City Council Workshop January 21, 1997, cont'd. Page 9.
Mr.'Licht encouraged the council to contact his firm if they would be able to provide any
additional information.
There was further discussion regarding the ordinance on septic tank pumping and other
issues related to septic/drainfields care and responsibility.
Mayor Fournier requested staff to place on the January 27, 1997 City Council Agenda for
setting decision/deadline date on sanitary sewer project. He also directed the City
Attorney to draft two moratoriums giving the council two options.
CM Berning asked about a public information meeting.
Mr. Licht said there needs to be more of a sense of direction from the City Council before
the meeting, more information from Elk River but agreed the public information meeting is
essential.
10. Adjourn -
CM
journ_CM Ackerman motioned to adjourn. Seconded by CM Wendel. All in favor.
Motion carried.
Workshop adjourned at 10:26 PM.
Larry Four, Mayor
J
Laine Beatty, City Clerk/Zoning Ad ' strator
Recorded by: Judy Hudson, Deputy Clerk
fila =WS 197