Loading...
09-15-97 PHCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA PUBLIC HEARING ON WASTEWATER FACIITIES PLAN AND PUBLIC INFORMATION MEETING RE: SANITARY SEWER/WATER PROJECT SEPTEMBER 15, 1997 COUNCIL CHAMBERS OTSEGO CITY HALL 7 P 1. Call to Order - Introductions - Roll Call (Mayor Fournier) Roll Call: Mayor Larry Fournier; Councilmembers: Suzanne Ackerman, Mark Berning, Vern Heidner, Virginia Wendel. a Staff: David Licht, City Planner; Kevin Kielb, City Engineer; John Harwood, Project Engineers; Andrew MacArthur, City Attorney; Ted Fields, Tom Roushar, Project Engineers of Bonestroo Engineer, Tom Truszinski, George Elickson from Juran and Moody; Gary Groen, Accountant; Elaine Beatty, City Clerk/Zoning Administrator; Judy Hudson, Deputy Clerk; Carol Olson, Secretary; Jerry Olson, Building Official. Mayor Fournier called the Public Hearing on Wastewater Facilities Plan and Public Information Meeting on Sanitary Sewer/Water Project to order at 7:01 PM. Mayor Fournier led in the Pledge of Allegiance and than introduced the Councilmembers and members of Staff. Mayor Fournier stated the City's Sewer and Water Project is a very serious business. Not only from a cost and responsibility standpoint but also from the tremendous benefit Otsego can gain from a broader tax base. A broader tax base translates into commercial and industrial businesses helping the City pay the taxes, thus easing the tax burden for homeowners and farmers. With a Sewer and Water System in place it becomes much easier for the City to respond to emergency situation such as ground water contamination and failing septic systems. The City has spent three years gathering information and putting this project together. The presentation has been the result of many hours of discussion and decision making. Mayor Fournier stated the Sewer and Water Project is for new residential, commercial and industrial development. He stated there would be no existing homes or businesses in Otsego that would be required to hook up to the system. There would be no assessments made with this project. If the sewer line goes by any property, landowners will pay nothing until the property is developed or until the property owner asks to hook up to the system. Any residential neighborhood outside of the sewer district will have to petitioned to be served. Mayor Fournier stated the only risk to the taxpayers is if the economy becomes slow, and development does not take place as projected. If that would happen, then money would have to be borrowed from the General Fund to meet the debt requirement. When the economy became normal it would be paid back. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 2. Andrew MacArthur stated the purpose of this meeting is for the following reason: 1. Public Information regarding proposed sewer system, collector system and water system. 2. When submitting a Faciities Plan to MPCA, there is a requirement of a Public Hearing related to the Facilities Plan. This Hearing will serve this purpose. Comments are welcomed but there will be time limitations as outlined in the handouts available. Written comment will be received until September 22, 1997, 6 PM. 2. Background Issues and Needs (David Lichtl Mr. Licht provided background of the sewer issue which goes back to the late 1960s and early 1970s when Wright County decided to allow platting of one acre lots. This set a precedent for development and the reason for sewer planning. The long range implications were not looked at. One acre lots for treating sewer is questionable in an urban setting. What happened over time, there were drainage problems such as occurred in the Hall's Development. This subdivision encountered a major problem and was left to Otsego to solve at a cost of $500,000. Because of this project and the density that was created, City Officials become concern with possible ground water pollution problems that could surface and consequently become a major financial burden to the community. Types of solutions is to be proactive in terms of attempting to prepare for what is considered to be an inevitable ground water pollution situation. First Step: Otsego Incorporated in 1990 to have the ability to address the sewer problem if needed (Exhibit A Overhead). Second Step: The first detailed Comprehensive Plan was prepared. Part of this Comprehensive Plan was the concept of Urban/Rural Service and Development was formulated. (Overhead Exhibits B and C) The Immediate Urban Service Area was defined where the one acre development had taken place. The Policy at that time was for all urban development should take place within that defined area. The reason was in -fill of development. Critical of this plan was providing the availability of sewer to the community at some future point. In 1991, there were discussions with Elk River regarding providing services to Otsego if there were a pollution problems. Mr. Licht briefly went over a schedule for Sewer and Water Facilities (Overhead Exhibit D) The objective is have the Engineering design and bid of the project completed by midsummer 1998 and the system functional by October 1999. A critical factor for this meeting is the Public Hearing on the Facilities Plan in order for the City to submit to the State for low interest loans and possibly grants and the deadline is October 1, 1997. If this deadline is missed, there is a six month wait, therefore pushing the project out an additional year. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 3. Mr. Licht referred to the handout on the Policies which have been established so far. (Exhibit E) He briefly highlighted some of the policies. He encouraged everyone to review and ask any questions at Public Comment. 5. System Plans: A_ Sewer Treatment System (Ted Field) Ted Field, Project Engineer from Bonestroo. Mr. Field spoke on the Wastewater Facilities Plan which his firm prepared. This document contains the results of a study to determine what is the best treatment plant, the capacity of the plant and the cost of the plant. This Document is important in seeking funding for the project. Once the cities of Dayton and Otsego approve this Document, it is submitted to the Pollution Control Agency. With their approval, the project would be eligible for a variety of funding. The Facilities Plan has to contain certain information and one of most important piece of information is the evaluation of alternatives. The Plan must demonstrate that the recommended plant and recommended process is not only the most cost effective in terms of meeting limits at the best cost, but needs to meet several other critical as well. This criteria has been met in the course of the study. One need was for expansion. Another need is the concern for possible future effluent limits imposed by MPCA. This issue determined the discharge to the Crow River, and plants proximity to the Crow River would be the best solution rather than to the Mississippi River. Mr. Field went over the attached overhead (Exhibit F) Flow Schematic for Activated Sludge Alternative. This method was selected for the following reasons: 1. High quality effluent it provides 2. Very expandable process for future capacity 3. Process is very amenable to more stringent standards in the future Overhead of Recommended alternative on proposed site (Exhibit G). Proposed site is north side of CSAH 36, approximately 6.7 acres. Shown is how the plant might be expanded in future for doubling of capacity and even greater capacity if needed. Overhead of Estimated Project Costs for Regional Wastewater Treatment Plant (Exhibit H). This overhead shows total costs. The total Capital Cost is $3,200,000 for a 300,000 capacity. Otsego portion of costs is 2/3 of totals, or $2,133,000 of capital costs. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 4. B. Sewer Trunk System(John Harwood) John Harwood, Project Engineer from Hakanson, Anderson Assoc., Inc. Mr. Harwood presented the Collection System within the City of Otsego. Overhead: Land Use in the Study Area (Exhibit I) This displays the Projected Land Use Overhead: Summary of Residential Equivalent Connections within the Sanitary Sewer Study Area (Exhibit J) This shows an extensive evaluation of existing and potential developments. 1,321 of total existing units with potential of 4,163 of existing residential units. Within the entire study area, with full development, there would be potential for approximately 10,000 population and potential up to 1,400,000 gallons per day of sewer flow. Within this study area, there is approximately 400 acres of potential commercial/ industrial flow. The long range planning has the full potential of Otsego in mind, but initially it is a small portion that is proposed to be served. Overhead -Sanitary Sewer Collection System Overview (Exhibit K) Mr. Harwood noted the facilities are sized, lift stations are located, lines are placed deep enough, lines are oversized as necessary so they can be expanded to serve the entire community. It is expected, in the future, the community will be fully served with sewer and water. Overhead - Population projections (Exhibit L) Shows the projected growth in the 20 year planning for population, commercial and industrial. Overhead - Phase 1 Sanitary Sewer Service Area projections for 20 Year Planning (Exhibit M) Shows 1,750 new people in 700 new residential dwelling units, service to existing commercial and to 143 acres of newly developed commercial and industrial users. Overhead - Phase 1 Trunk System (Exhibit N) This area is currently undeveloped. Intention to build a treatment plant and trunk collection system and facilities necessary to make sanitary sewer service available to this area. It will bring sewer to the borders of the developed area. If or when ground water pollution problems occur, availability to services will be there. Overhead - Phase I Base System Two lift stations - one at the north end of the project and one at the south end of project with discharge by force main to treatment plant located down near the Crow River. From this Base System, lines can be extended as shown to extend into development areas and service new developments. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 5. Overhead - Project Phase Development Pattern Displaying the Year 1 through Year 15 associated costs of Lateral Costs Trunk and Sub -Trunk Costs. C_ Water System (Kevin Kielb.) Kevin Kielb, City Engineer. Mr. Kielb presented the Potable Water Distribution System for the eastern side of Otsego. It is intended to follow along side of the sewer system with regards to initial system construction and later expansion. Overhead - Phase 1 Study Area, Phase 1 Service Area and Long Range Service Area (Exhibit Q). This is the same area as the Sewer Area. City has an existing Well and Water Main in place (located by Otsego Elementary School) Currently about 1,000 feet of water main along CSAH 42. The current well and water main will be incorporated into the entire water system for the City. 3 components of the Water System: 1. Source or supply (wells) 2. Storage 3. Distribution System Looked at long term needs - entire study area which must be planned for now. Considered residential flows, commercial/industrial flows and fire flows. Overhead - Water Service System Overview (Exhibit U) Shows the Implementation of Phase 1 and Long Range Implementation Sighted towers and wells at equal spacing throughout the system Depicts size and location of water mains Overhead - Potable Water System Study Summary of Report (Exhibit R) Displays 5 year cycles including construction and costs for twenty years. 1998 Project amounts to $2,315,000 including construction, engineering, and administration. 6. System Financing (John Harwood I Tom Truszinskil John Harwood noted the initial costs for the Wastewater Treatment Facility are $3,200,000 construction and in year 2010 a $2,200,000 expansion. The Trunk Sanitary Sewer Faciities with initial $1,400,000 base trunk system also initial expansion into developed areas of which $739,000 is trunk. Every 5 years or so anticipate additional facilities expanded into developmental areas. The Potable Water Supply with initial construction of $2,315,000. These figures were given to Mr. Truszinski to be put into a fiscal evaluation for financial feasibility to the City. Also given to him were estimates of annual Maintenance and Operation expenses with each facility. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 6. Mr. Tom Truszinski, Juran and Moody, Finance Advisors. Mr. Truszinski, with the Engineers assistance, attempted to be as conservative as possible with the numbers. Tried to give the most accurate costs - looking at the future improvements and taking those costs with 1997 dollars and an inflation factor increase to give a better estimate of what costs might be in the Year 2008 etc., What was done, was to increase user fees and connection charges to keep in line with those costs. He explained for financing of the Sanitary Sewer Collection System as well as the Treatment Facility pursuing a low interest loan and possibly some grant funding through the Public Facilities Authority. The way the Public Faciities Loans are put forward are - they are a 20 year financing with level debt service payments. The problem this can create is when Otsego is anticipating new development to occur, that puts an undue burden on the system right away. Which means a need for a significant amount of capitalize interest or borrowing money into the Bond Issue to cover upcoming principal and interest expenses. Mr. Truszinski described this situation to Terry Koma, Director of Public Facilities Authority. What he has been allowed to do is deviate from State Policy and structure this Bond in such a way that Otsego wouldn't have to go with level debt service. Water System can not go through the Public Faciities Authority for financing. The City would be looking at the conventional market for financing the Water System. Overhead - Project Cost Analysis (Exhibit S) Outlines two forms of revenue in connection charge and user charges for the Potable Water System, Sewer Collection System and Wastewater Treatment System. Overhead - Wastewater Treatment Improvements Cash Flow Analysis (Exhibit T) Outlines the total debt payment for this project which Mr. Truszinski reviewed. Overhead - Sanitary Sewer Collection Improvements Cash Flow Analysis (Exhibit U) Outlines the total debt payment for this project which Mr. Truszinski reviewed. Overhead - Potable Water Supple System Improvements Cash Flow Analysis (Exhibit V) Outlines the total debt payment for this project which Mr. Truszinski reviewed. Presentation by Staff ended at 7:58 PM. Mayor Fournier opened for Public Comment. He asked everyone to state their name, address and phone number and limit comments to three minutes or less to allow Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 7. others to speak. Questions not immediately answered will be answered by phone or letter. Rod Bengtson, 14340 89th Street NE, 241-9282. Questioned why the City Policy is not printed on the City's letterhead. Stated concern City is going into this project without any primary customers. Feels the City will either pull this off or go bankrupt, which is his concern as he will be paying for it. Stressed the Council to use common sense. His questions: Can Council give the number of the overall cost. John Harwood answered that with 1997 dollars the Trunk Portion of Sewer System for Major portion of Water System and Treatment System approximately $13,200,000 over 20 years. Mr. Bengtson ask if the City has fall back system. John Harwood responded for the first phase of base trunk system is $1,400,000. In addition the first phase of Treatment Plant which is shared by Otsego and Dayton is $3,200,000. The first phase of the Water System is $1,400,000. Therefore Phase 1 is approximately $6,000,000. Mayor Fournier stated if the projected development does not take place as planned, it could come out of the General Fund. As the economy picks up, it would be paid back to the General Fund. Mr. Bengtson asked if there are any committed customers at this time. Elaine Beatty, City Clerk/Zoning Administrator answered with the list of businesses that have indicated to her that they will hook up (5 businesses). Mr. Bengtson asked about other related costs. Mayor Fournier responded that all costs are figured into the project. Mr. MacArthur responded that what has been presented for the first phase of this project will be user financed. The City is not talking about special assessments to existing residential for quite a period of time. When the City goes into that, the City has to clearly follow the State Law and prove benefit to those properties. Mr. Bengtson asked who will manage the project. Mayor Fournier noted at this time no manager has been appointed. If the project is approved by the City Council, such an appointment will be done. Janet Kuklock, 6741 154th Lane NW, 427-6184. Spoke in opposition of the proposed location of the facility on the Wayne Lehn property. For over a century this has been farm land for her family to enjoy nature. Doesn't feel anyone would build or purchase a home near this location. Doesn't want to see this prime farm land and river lots used for the plant location. Concern with environmental and wildlife impact. She encouraged the Council that they have other choices and to preserve their Heritage. Public Hearing/Public Information Meeting of September 15,1997, cont'd. Page 8. Edmund Sworsky, 5640 Quilley Avenue, 428-2339 Present on behalf of Tom Koerwitz and also himself. Mr. Sworsky read a letter (Exhibit W). Letter basically supported a Sewer Project but spoke against the location and marked other optional sites for the Council to consider. The current proposed site would be viewed by too many current residential. Ron Pouliot, 8110 River Road, 441-2811 He questioned Mayor Fournier if he is willing to put this on a referendum. Mayor Fournier didn't feel the structure is there under State Statute to allow that but wanted to refer this to the City Attorney. Mr. Pouliot asked if storm sewer and streets are included in the costs. Mayor Fournier responded those costs are paid for by the developers. Mr. Pouliot noted for everyone to read the Minneapolis Star and Tribune (9-15-97) on what happened in Buffalo. Steve Ackerman, 8217 Packard Avenue. Supported the Wastewater Facility and Water System. He feels it is inevitable it will come and the longer the City waits, the more it will cost. Current prices for mound is between $8,000 and $12,000 and a well is about $4,000 and these systems are temporary. All the surrounding communities are growing with commercial and industrial and nothing is happening in Otsego. Mr. Ackerman also questioned the setbacks from shorelines will be changing in Year 2000. Mr. Ackerman said if anyone has questions about what he has said to contact him. Grover Stauff, 14886 NE 70th Street, 441-1914 He understands that existing homeowners do not have to pay for this project. Mayor Fournier responded that is correct until they are a user. Mr. Stauff asked what kind of protection there is to keep that policy in force. Mayor Fournier said this Council can not bind future Councils. Mr. Stauff asked if an existing homeowner sells his house, and it is in the sewer area, will the new owner have to hook up. Mayor Fournier said only hook up when you ask for it. But, he also explained about the Point of Sale Ordinance. Cliff Noll, 15420 89th Street. Mr. Noll asked what percentage of the Phase 1 Area is in the Flood Plain and concern with well going into a Flood Plain. Mr. Kielb explained how the well head will be protected and 2 feet above the flood plain as required by the State. Steve Johnston, Landform Engineering Company, 15500 Wayzata Blvd, Wayzata. Representing a developer who currently has 120 acres under contract and is looking at additional property. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 9. The City has previously received correspondence from him regarding his concerns with the proposed assessment amounts. They support the project but concern with the proposed assessments. If the developers can't support development with these numbers than the residents should be concerned. His client is developing in Rogers and their land costs are about $12,000 per acre currently. Add to that a $3,000 per acre assessment you come up with $15,000 total. The figures presented here would have an equivalent assessment of $15,400 per acre. Therefore over $400 per acre higher than Rogers and not factoring in paying anything to the property owner. In order for the development to work in Otsego, you must be competitive with surrounding communities. If not, developers will not be able to financially develop in Otsego. He encouraged the Council to consider all options. Eugene Goenner 12867 83rd Street Mr. Goenner referred to the Report where Otsego needs 80 REC per year. In the past five years how many years has Otsego met that number which he stated only one. Mr. Licht went over the totals of home permits for the past 5 years with the average of 53. Mr. Licht explained that basically for the last 2 or 3 years there has not been sizable land developing. When there was, County Ridge and Antelope Park the surge was there at that time. Mr. Harwood explained the 80 Connections is a combination of residential and commercial/industrial. Much of the commercial growth can't occur now because of the lack of sewer. Mr. Goenner went on to say that if the 80 RECS are not met, money will come out of the General Fund. He understands that currently the General Fund is running near deficient. Mayor Fournier disagreed stating the General Fund is in good shape. Gary Groen, City Accountant, responded the General Fund had a fund balance of $325,000 which represents about 25% to 30% of expenditures. Mr. Goenner asked if the General Fund has to be used, the City might have to raise its levy and the State has a maximum levy limit in place. Mr. Truszinski noted that is just for general administration of the City and wouldn't apply for debt service. Eugene wanted clarification if the levy can be increased for an old debt or just new ones. Mr. Truszinski responded since the Public Facilities Authority Loan and Water Loan are General Obligation Bonds in nature, if the connection fees and user fees are insufficient to pay debt service in that particular year, the City would be allowed to raise the taxes outside the levy limits to make good on that Bond payment or that next year's Bond payment. In subsequent years the City wanted to keep the levy high and replenish the General Fund the City would be dependent upon levy limits but levy limits are in place and was not going to pay off the Bond issue the City would not be able to keep that levy high. Mr. Goenner asked if the Council can change their mind where the line is placed in residential areas. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 10. Mayor Fournier replied yes. Richard Koppy, RLK Associates, representing John Darkenwald. Mr. Koppy stated John Darkenwald's family owns 200 plus acres in CSAH 42 and 101. He had two points: 1. The Sewer and Water Project are not a benefit to the Darkenwald's property and must show a benefit and the cost of project do not pass the benefit test. 2. Would like to see a couple to things added to Sewer Policy (Exhibit X) The Darkenwald's are looking at a residential project, commercial project, joint development. They have an existing Wastewater Treatment System. They will add storm sewer, streets, sanitary sewer, water system serving more than 200 acres that will join the City's Tax Rolls. Mr. Koppy stated that in the 30 years he has served in the public works environmental serving as an engineer, he has never worked for a property owner with this kind of 200 acres of opportunity Mr. Darkenwald has. He is the only property owner, he knows, with a Wastewater Treatment Plant with a discharge permit into the Mississippi River, on his property. He also has two domestic drinking wells for the existing development. Mr. Koppy showed a overhead of a cost comparison to the City Project (Exhibit Y) He stated they would be willing to cooperate any way they can to expand and help the City's project. Wallace Odell, 26 Cannon Drive Mr. Odell stated the State and Federal levels are concern with the high cost of a centralized sewer systems in communities that are not ready for development. Recently the appropriations Committee and House of Representatives have asked the EPA to make a study why this is and what can be done because they can not continue to finance all of these needs. EPA responded in 1997 and pointed out a group of factors which influenced this business and also suggested to serious ways to provide alternate treatments (this was at the Federal Level). At the State Level, it was found that a few years ago the State passed Statute 47 LA, (Capital Intensive Services, Private Suppliers) in which State Legislature clearly stated a policy encouraging municipalities furnish capital intensive services to use private supplies were practical to do so. He has concerns with risk and competition. He doesn't feel there is a lot of commercial and industrial along 101. There is a lot of land in the Flood Plain or in Green Acres. He feels that it will be quite a few years before Otsego can be competitive with Elk River, Rogers, Ramsey, Big Lake, Becker and Hasson, St. Michael and Albertville. Also tough competition for residential. There are three projects - Nascar, Darkenwald and Mike Emberton, private projects who are willing to do private services at no risk to the City. He encouraged the City to look at decentralized systems. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 11. Sue Donavan, 17201 53rd St NE Asked to clarify from the Phrase 1 Map, that the treatment plant will go basically in her front yard and yet she will see no benefit. Mayor Fournier responded that is correct. Ms. Donavan stated that this Council will be sending a very negative message to other Otsego residents if the Council is willing to take property from Wayne Lehn that he is not willing to give up without doing an extensive and exhaustive search for other alternatives, which is currently the situation. Mayor Fournier said he has talked to every landowner in that area trying to find a site and no one wanted to sell the City a site. The Council looked at what would be best based on the information they have. Ms. Donavan asked why this area and why not the Mississippi. Mayor Fournier stated because the discharge has to go to the Crow River and Federal Regulations allow very little discharge of treated water to the Mississippi. Ted Field also responded that a lot of criteria went into the selection of the site. The Mississippi River versus Crow River discharge was a issue. The current policies are very very tough on new or expanded discharges to the Mississippi River. From a treatment cost perspective the City would be better off discharging to the Crow River and a site closer to the Crow River made more economic sense. Also this a joint facility serving Dayton and Otsego. Sherry Lahn, 17155 53rd Street Ms. Lahn stated the City is planning on stealing her families land for the plant and they won't even be included in this service. She spoke with the MPCA and they were not aware of this meeting and were upset since they were to be notified of the meeting. Ms. Lahn said the plant site is only about a half mile from the Mississippi River and the City isn't suppose to dump into the Mississippi. They are located in the Flood Plain and concern with all of the discharge ending up in their back yard, especially in slab town. Jay Larson, 53rd Street, 428-4920 Mr. Larson stated he just moved into the City. They have a beautiful piece of property and enjoy the wildlife. He was never told about this sewer treatment plant and feels the City will spoil the beauty of the country with it. Sherry Lahn Ms. Lahn encouraged the Council to carefully consider their actions. Her family doesn't want sewer and water and encouraged more publication. 8_ Adjourn Mr. MacArthur reminded everyone that a summary of these comments will be part of the Facilities Plan that goes to the MPCA and the record will be held open until September 22, 1997, 6 PM for written comments. Public Hearing/Public Information Meeting of September 15, 1997, cont'd. Page 12. CM Heidner motioned to close the Public Hearing. Seconded by CM Ackerman. All in favor. Motion carried. CM Ackerman motioned to adjourn. Seconded by CiNI Heidner. All in favor. Motion carried. Meeting adjed atX0VV*; Mayor Lar4&urnier 2 - L-z� At st: Elaine Beatty, City Clerk/ Hing Adm. (7� i - �1 ab m Reco d d y. Judy Hudson, Deputy Clerk City Seal Additional Attachments Exhibit Z: Aaenda Exhibit AA: September 10, 1997 Hakanson Anderson Assoc., Inc. Letter Exhibit BB: September 8, 1997 NAC Memorandum Exhibit CC: News article from Elk River Star News dated September 17, 1997 Exhibit DD: September 16, 1997 letter from Susan Donovan Exhibit EE: September 22, 1197 letter from Steve & Carol Orwoll Exhibit FF: September 19, 1997 letter from Sheila Greninger Exhibit GG: September 19, 1997 letter from Donald Greninger Exhibit HH: September 19, 1997 letter from Russell Greninger Exhibit II: September 19, 1997 letter from Phyllis Greninger Exhibit JJ: September 17, 1997 letter from Mary Greninger Exhibit KK: September 22, 1997 letter from Steven Ackerman Exhibit LL: September 22, 1997 letter and attachments from Wallace Odell Exhibit MM: September 22, 1997 letter from Paul Levenson Exhibit NN: September 22, 1997 letter from George Yankoupe Exhibit 00: September 22, 1997 letter and attachments from Gilbert Darkenwald