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03-12-97 WSSPECIAL JOINT CITY OF OTSEGO/CITY OF DAYTON SEWER AND WATER WORKSHOP MARCH 12, 1997 7 P 1 Mayor Fournier will call the meeting to order. Mayor Fournier called the meeting to order at 7:09 PM. Roll Call: From Otsego: Mayor Larry Fournier; Councilmembers: Suzanne Ackerman, Mark Berning, Vern Heidner and Virginia Wendel; Staff: Kevin Kielb, Assistant City Engineer, Elaine Beatty, City Clerk/Zoning Administrator, Judy Hudson, Deputy Clerk. From Dayton: Mayor Phil Forseth, Councilmembers: Karen Bowen, Anne Ziebell, Douglas Anderson, Hilmer Hartman, Mark Hanson, City Engineer and Shirley Slater, City Administrator. ?. Discussion of Sewer and Water issues. Mayor Fournier started out reporting the SAC and WAC Charges for the Cities of St. Michael and Albertville are: St. Michael Sewer Access Charge $ 3,700.00 Water Access Charge $ 1,300.00 Total $ 5,000.00 Per Lot assessment Lateral Trunk $10,000.00 Trunk Line Assess $ 1,000.00 Total Per Lot $16,000.00 In Albertville the total assessment was $500.00 less than St. Michael. CM Heidner thought St. Michael was on 400,000 gpd. CM Berning questioned what Otsego's charge would be. It was noted about $12,000 per lot for sewer. John Simola, Otsego resident and Director of Public Works for the City of Monticello. He shared that he is currently doing a survey of surrounding communities for SAC and WAC Charges since Monticello is considering raising their rates. He will share the results of this survey with Otsego and Dayton upon completion. He noted Monticello's charges are lower. The whole City of Monticello is served, therefore about 80 to 90% of the plant is paid through taxes and trying to pay the 10 and 20% through SAC and WAC charges. He noted they also have NSP there which helps. CM Berning questioned the engineers that the neighboring sewer plants are existing plants and this will be a new plant and will it affect the SAC Charge (a higher start up charge). Mark Hanson replied the SAC charges are to pay for the plant. The area charges are to build the distribution system. Could take the total cost of the plant, design it for a service area, take the number of ultimate connections, and it would be so much for each connection. The first phase could be high because of fewer connections and a decision Special Workshop Meeting of March 12, 1997, cont'd. Page 2. would have to be made on how to deal with this - with a ultimate rate which would be smaller or with the rate that it would take to finance the project. The same issues with area charges for trunk system which are typically done per acre or connection bases. Mayor Fournier noted the figures he received for St. Michael and Albertville were for new construction. He asked Dayton how much capacity they need. Mayor Forseth replied for the purpose of the study, a service area was outlined for capacity and hasn't been changed. Mr. Hanson noted the study called for .77 mgpd ultimately. Dependent upon the ultimate service area which would be the NW corner of Dayton and is approximately 3,000 acres. Mr. Hanson also explained how Dayton could have the potential of being served by three different ways: Elm Creek, Cab or Otsego. There are limitations with the first two. Mayor Forseth noted the differences between Dayton and Otsego. Dayton is looking for correction of current problems in the village and the shoreline district. They have a built in population that would hook up quickly since they have failing systems. Otsego is looking for development. CM Wendel asked if there was a possibility of Dayton not entering into commitment with Otsego. Mr. Hanson said the opportunity does exist because there are two other options and maybe use one of those other options on a short term basis. Mayor Forseth replied his own personal preference would be to go with Otsego for a Joint System for the long term. CM Anderson stated he would like to look at the other alternatives Dayton has. He feels this project might be too expensive without driving some development, but it could also be the cheapest. Karen Bowen noted Dayton has a pressing need, but needs more information. CM Hartman stated he has been watching the problems Dayton has for a long time. He sees this as an opportunity for Dayton. He stated they don't have the capacity from the metro system. Dayton has been told there is capacity for them from this system, but they can never hook up to it and use it. If the joint venture between Otsego and Dayton is feasible, he would support it. CM Anne Ziebell would like more information as they go through this process and sees this as the most cost effect. She is concerned with the assessment costs and wants the most cost effective option. Mayor Fournier supports a project with Dayton for the cost effectiveness. CM Wendel also supports working with Dayton for cost effectiveness and wants a long term commitment. CM Berning supports working with Dayton. His concerns are with who is going to run and operate the plant, future connections for the first few years (100 connections a year) not sure if Otsego is ready to expand that fast. CM Heidner's concerns were size of plant, since Frankfort is no longer a part of this, landowners that do not want to develop. He feels it makes sense for the two cities to work together and build a facility as it spreads the risk. Mayor Forseth noted two cities working together have a better advantage getting grants. } Special Workshop Meeting of March 12, 1997, cont'd. Page I CM Ackerman supports working with Dayton, need to keep costs down. Wants to find out the best way to build the plant. Phil Forseth talked about Bonestroo re -looking at the report and giving some hard numbers to work with. As far as the operator, the report talks about a Sewer Board and feels it is too early to arrive at an answer. CM Berning said whatever is looked at, what would happen if one municipality really develops and the other one backs out. Mayor Forseth saw that possibility being very difficult as this would be a Joint Powers Agreement. Mayor Fournier agreed and that all these concerns will be addressed through the agreement. He also discussed this with the City Attorney who agreed the Joint Powers Agreement would be designed to cover these issues. CM Heidner referred to the initial size of the plant. Discussion has been on 400,000 gpd. Otsego has revisited their portion and is more speculative than Dayton. On page 16 of the report - total wastewater forecast of the different cities. Under Otsego's portion it has existing of 1.24 mgpd by the year 2006 up to 2.30 mgpd. Realized that we can't count on that on the first 1.24 mgpd which then drops Otsego down to 100,000 gpd initially in first phase. Add Dayton as 1.08 mgpd, add two together and remove Frankfort it comes in at about one-half of the size. He views this at being a more realistic size for the plant (200,000 gpd) Mr. Hanson agreed it would be looking at half the size. For Dayton's flow, he doesn't see the numbers changing, about 1,000 people for the first phase. CM Heidner was concerned with if the plant was run at half the size it would not be as cost efficient. Everyone agreed this needs to be reviewed and worked into the report. CM Wendel asked if it has been discussed what percentage each city would have. Mayor Forseth said it goes by use and of course if Dayton would pay based on their percentage of use. CM Heidner noted by looking at the numbers it appears that it would be a 50-50% for the two cities. CM Wendel asked if the 50-50 split would include the construction, reports, plans. Mayor Forseth said the study would be split 50-50 and whatever percentage Dayton would need. Land acquisition was discussed. Mayor Forseth was concerned with purchasing an adequate amount for expansion. CM Bowen asked if a plant can be built for a 200,000 gpd. Mr. Hanson replied it can be done, but there will be a point where a million or two million dollars will be spent based on the flows and still be feasible, but the land will be expensive. CM Heidner noted the numbers for the ultimate capacity are probably low. His concern is within the next five to ten years and can Otsego afford it. Another concern Mayor Forseth had was that he isn't sure that Pigs Eye will be there for the outlying areas. They are very extended. CM Anderson asked about the placement of the plant. Special Workshop Meeting of March 12, 1997, Page 4. Mayor Fournier pointed out on the map where Otsego has been discussing. The area is in the old Frankfort Township area, being close to the Crow River. But open to other sites. Mayor Forseth said if the plant was located on Dayton's side, the Met Council would own it and have the final say although they did support Dayton getting sewer from Rogers. Mr. Hanson noted the Met Council's concern would also be with the transportation systems. CM Berning asked, based on assumption if the plant is reduced, will different alternatives of types of treatment plants be looked at. Mr. Hanson thought that should be considered, but consideration should be given for ultimate capacity. CM Heidner suggested starting out with aeration ponds, than jump up to the full mechanical plant. Mayor Fournier asked which type is the easiest to expand on. Mr. Hanson said it could depend on the land and location and this will be addressed in the study. Cm Heidner thought it might to possible to cut costs in half if using aeration ponds to start out with. Mr. Hanson noted the savings could be applied to land acquisition. CM Berning talked about amount of land being needed. Page 28, report shows 20 acres with the buffer and a mechanical plant. He asked if there is any ball park figure for land prices. Mayor Fournier didn't have any numbers on this and would need an appraiser and look at past land sales. CM Bowen asked if it would be feasible for the Otsego Plant to service all of Dayton. Mr. Hanson responded if that was anticipated, than a system would have to be built to accommodate that or understanding that it will be upgraded in the future. Those kinds of decisions would have to be made. There was future discussion of this with lateral designs etc. Mayor Forseth questioned the possibility of a joint water service project. Mayor Fournier said this could be a possibility and should be discussed since Otsego is looking at a water project also. CM Wendel questioned if Otsego goes with an aerated pond, the problem of dealing with the sludge would also be shared with Dayton. Mayor Forseth said they would handle their percentage. CM Berning talked about the main trunk line and asked if Dayton will pick up the costs of the trunk line running across Otsego to Dayton. Mr. Hanson said it would probably end up being a force main unless Otsego would want to build a trunk line out for development. Costs for a force main would be incurred by Dayton. CM Wendel asked if it more feasible for grants if there are two cities working together. Mayor Forseth replied yes and Dayton will also be looking for grants for low income families (through their County) and this would not involve Otsego. Special Workshop Meeting of March 12,1997, cont'd. Page 5. Mayor Fournier opened to the Public for questions. Wally Odell, Otsego resident, noted through discussion that some costs would be based on use (sliding scale) would also apply to the original capital investment in the original debt service. For example, if in the front end Dayton has immediate needs and Otsego's is all development needs, does it mean that the sliding scale will apply to the debt service in the initial years or will it be a fixed sharing of the original costs. Mr. Hanson thought the operation would be more off of usage. If the plant is being sized for a 50-50 share you would like to think that is the way it will be paid for unless the fiscal consultants would differ. Vincent Peterson, Otsego resident, asked how Otsego is planning to be pay for this. Mayor Fournier and CM Heidner said this would probably be paid for through low interest loans (3% State Revolving Fund). John Darkenwald, Otsego resident, if the purpose of this meeting was to discuss changing the study are the two communities doing anything prior with the people who will be using the facility to get their thoughts. What are the potential users thoughts and wants paying for it. Mayor Fournier explained that once the project is defined and have the real numbers a Public Information Meeting will be held. Mayor Forseth reported Dayton has already had one Public Information Meeting. Right now the cities are just defining the project and that definition is needed for additional Public Meetings. There are existing situations in Dayton that need correction but are willing to look at alternatives. This project seems to very cost effect, less than the Diamond Lake project. There was further discussion on the shoreline requirements for septics. (Note: see the attached insert for a verbatim transcript) John Darkenwald asked if Bonestroo is doing the update and if his 200 plus acres are included in the study. He wanted clarification is his 200 homes plus the 200 acres are included. CM Heidner said in the initial report there were to be 500 homes hooked up and they have been removed. But the study hasn't been done. Mayor Fournier said they wanted to leave the Darkenwald's 30,000 gallons of capacity of their plant to be available to them. Mr. Darkenwald they have the ability to service 200 plus acres and needs to know if this amount of acreage is left in the study. He has a permit with modifications to service his land. Mayor Fournier said this needs to be outlined and asked for Mr. Darkenwald to prepare a map outlining his area. William Jones, Otsego resident, asked if the placement of the treatment plant is where the new development will go into. Mayor Fournier replied the major reason for placement there is for discharge to the Crow River. I (The following is to be added to the March 12, 1997 Minutes on Page 5) John Darkenwald: Larry is Bonestroo doing this next study or someone else. Mayor Fournier: Yes that is our intention to have them update their original study to fit what is out there today. John: So my question is, is our 200 plus acres in the study Bonestroo going to do. Mayor Fournier: You mean over by your trailer. John: The 200 acres we own that can be served by the permit we have in our own facility. Mayor Fournier: We have not included your area. John: You have not included our 200 plus acres which is an additional 53 acres with 200 homes on it. That is not in the study is that what your saying. Mayor Fournier: That's correct. That is our intention. I am not sure that is in there. CM Heidner: That's why I pulled out the .124 mgd. Because that is what we figured in the area. Talbot: Can I get mine out of there too. Heidner: I don't think your in it right now. John: Just want to clarify this because there was an article in the paper about 200 homes. 200 homes plus 200 plus acres. Heidner: Initial plan that we have in the report was 500 homes initially hook up in the first year. Those are essentially out of there. John: So our 200 plus acres are not in this study. Heidner: As near as we can tell. Mayor Fournier: Right. Heidner: The study hasn't been done yet and we have told them to take it out. John: Its either going to be in the study or out of the study: Mayor Forseth: We need to outline the scope of the study. John: Just want to know if we are going to be in the study because this is a question of benefit I think. Mayor Fournier: Ya we wanted to leave your 30,000 gallons of capacity available to you in your treatment plant. John: No that is not what I am saying, that's one thing. Mayor Fournier: Ya, I know. John: That's 200 homes on 53 acres. We have 200 plus acres with the ability to serve sewer and water. Is that going to be in the study. I would like to know that. Mayor Fournier: We will have to get that information for you John. CM Heidner: Can you service that with your current plant the other 200 some acres. John: I have a permit to discharge to the Mississippi River with modifications I can serve my land, yes I can. Shirley Slater: Do you want to be included in the study or not. John: No. Shirley: No. John: That's why I want them to tell me. Mayor Fournier: Ya and I did. As far as I know its not in there but we aren't absolutely sure. Mayor Forseth: We need to outline the scope of the study. Elaine Beatty: Mr. Mayor, I think we need to get a map of what he's talking about. Mayor Fournier: John, John, we need a map from you of the exact area your talking about. OK, are there any more questions out there. Special Workshop Meeting of March 12, 1997, cont'd. Page 6. Jim Talbot, Otsego resident, asked if all the discharge will go to the Crow River, therefore could create contamination and prevent the river from freezing up. Kevin Kielb explained the water is treated before discharge. There was further discussion on discharge. It was also noted that currently there are a number of homes discharging directing into the Crow River that is untreated. Lyle Talbot, Dayton resident, stated he was involved in this awhile back and he has in his possession some original proposals for Dayton's. Other things involved which indicated Pigs Eye has plans to take over all the sewage all the way to Monticello and in all direction. This is something he thinks should confront the Metro System and ask them what are their plans and how much will it cost and maybe they will come out here. He was asked by someone to bow out of this and he has in his possession papers that he will give if someone will sign for them. Mayor Forseth offered to sign for the papers. Jim Talbot requested that once the study is done and the Council comes up with hard numbers to let the citizens know and vote on this. Mayor Fournier announced that the Council plans on Public Information Meetings. John Simola advised the Councils that Monticello is on their second wastewater treatment plant which he had thought he never would have had to built. Some of things they learned, that if this proposed plant is downsized, make sure the door is big enough for expansion, pipes are big enough, all front end operations are big enough etc. so that it doesn't have to be all ripped up and thrown away. In reference to the studies, he supports having them but have the engineers breakdown all costs so the Council can determine if they are hard numbers. CM Berning said if Bonestroo does the study, will they be doing just the treatment study and not the lateral lines. If Otsego takes out land like the Darkenwald land, who is going to pick up the additional costs. CM Heidner noted those would be force main lines and wouldn't be assessed towards that property but part of the entire project and would be part of the lateral assessment. Kevin Kielb said he could also be part of the trunk facility charge. William Jones asked if for the new development would they have the option of hooking up to the sewer or use on-site septic systems. Mayor Fournier explained the sewer project would be only for new commercial, new housing and industrial and any existing area would have to petition for services. Any new development within the service area would have to hook up to sewer. John Simola explained that in Monticello when there has been leap frog development, the City made the developers pay for absolutely everything to get sewer to the development. Special Workshop Meeting of March 12, 1997, cont'd. Page 7. MEMO 3I I u Mayor Fournier declared the meeting adjourned. M"a"yor Lar ou 'er ttest: Elaine Beatty, City Clerk/Zonin dm. Recorded by: Judy Hudson, Deputy Clerk