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HomeMy WebLinkAbout06.05.00 Work Session Packet City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us SPECIAL COUNCIL WORKSHOP CONFERENCE ROOM A JUNE 5, 2000 - 6:00 p.m. TENTATIVE AGENDA 1. CALL TO ORDER 2. ADOPT AGENDA 3. 209th STREET SEWER CONNECTIONS a) Staff Presentation b) Council Discussion 4. ACTION ITEMS 5. ADJOURN City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor and Council Members FROM: JohnF. Erar, City Administrator SUBJECT: Special Council Workshop Tamarack Ridge Plat - Township Sewer Connections DATE: June 5, 2000 INTRODUCTION At the May 15, 2000 Council meeting, the preliminary Plat for the Tamarack Ridge development was presented and discussed. One aspect of this development, though not directly related to the approval of the preliminary plat, included the provision of City water services to township residents on the south side of 209th Street. While it was clear that these properties would be annexed upon provision of water services, Council expressed concerns with regard to allowing these same properties to continue to receive sanitary sewer services from Empire Township. DISCUSSION In further review of these issues, staff has concluded that three options exist to address this current situation. These options, however, need to be considered within the context of the City's continued willingness to provide water services to these township properties. Similarly, each option carries its own respective implications that Council may wish to consider. OPTION 1 This option would allow Empire Township to continue to serve these annexed City properties with sanitary sewer services. Essentially, the township would act a private/public utility provider. Under current City Code regulations, properties receiving either water or sewer are required to annex into the City. However, current policy does not require City properties to obtain both services from the City but does provide that any property receiving either City water or sewer must be annexed into the City. Consequently, should these annexed properties continue to receive sewer services from Empire Township, this would not necessarily be inconsistent with City ordinances. I have requested an opinion from the City Attorney's office to fully research this aspect of the City Code to gain a better legal understanding of the City's authority in this matter (attached). While this option may not be totally ideal, it does allow the City to annex these properties and to take total complete control of the roadway in terms of reconstructing 209th street to City urban standards. OPTION 1 - Policy Issues Policy issues associated with township service billing, maintenance and repair of the line could be addressed through a joint powers agreement. In addition, transitioning the line that would actually be located in the City to municipal ownership could also be incorporated into the agreement, with the City effectively taking ownership over a specific period of time. While there certainly are a number of valid concerns over the ability of the township to promptly respond to problems with the line, and the fact that these future residents would likely call City officials on related sanitary sewer problems, the joint powers agreement could address these points as well in terms of the City being contracted by the township to perform maintenance and repair of the line. This could include a provision for all City repair and maintenance expenses being invoiced to the township. While admittedly this scenario may not be ideal, it does address the finer points of how the responsibilities for line maintenance and repair would be handled. In review of the existing service line, it is my understanding that this line was installed in 1975 and is comprised of PVC material. For a more technical review, City Engineer Mann will provide an engineering overview of the existing township system. OPTION 2 Similarly, this option would be facilitated through an agreement with the Township that would provide for the immediate transfer of ownership of the line to the City. City ownership of the line would address any concerns associated with line responsibility for the repair and maintenance and would bring these new residents under the City's current sanitary sewer rate structure. While the line would still be connected to the township's sewer system, the City would actually own that portion of the line servicing these new City residents. OPTION 2 - Policy Implications Policy implications associated with this option would require the City to establish a joint powers agreement with the Township to address related transfer of ownership issues. These issues would include payment to the township for properties that are contributing to the township's sewer flows. In this regard, the City would bill these newly annexed properties for sanitary sewer services in accordance with the City's established rate structure, and in turn would then pay the township in accordance with their rate structure based on the number of properties actually utilizing their system. With respect to line maintenance and repair, a provision granting the City access to the township's manhole where this line actually feeds into their system could be incorporated into an agreement. The benefits of this approach, in comparison to options one and three, would allow the City to take possession of the line, but would require no capital investment to the line in terms of any needed modifications. This option would also allow the City to provide water services to other requesting properties within the township that utilize township-owned public sewer service by simply taking ownership of the township sanitary sewer line servicing these properties. This may be a more elegant method for the City as opposed to forcing connections and investing City funds in "single source" municipal connection that could not be financially recovered through connection charges. OPTION 3 This option would provide for the City to connect the existing township line serving properties on the southside of 209th Street to the City's main sewer line serving Tamarack Ridge. A proposed connection to the line will be discussed by City Engineer Mann, along with a cost estimate associated with this option. Several issues should be reviewed relative to this potential course of action. In order to serve the properties on the south side of 209th Street to the City's public sanitary sewer system, a connection to the manhole that would divert the flow of these properties would also affect properties on the east side of Highway 3 just south of the proposed City system connection point. This, in turn, would result in these properties (Hwy 3 properties) being served by City sewer, and create a situation where the City would become the default service provider. The issues then become a series of "what if' policy questions. For example, Hwy 3 properties have not requested the City to provide City sewer services given the fact they are already receiving township sewer services. The City may be faced with some difficult design and connection issues should these specific properties refuse City sanitary sewer services and consequently annexation into the City. Accordingly, Council will need to discuss potential alternative design issues should this situation become reality. In terms of sanitary sewer system connection costs, the City would have a very difficult time charging for this system connection as all these properties (Hwy 3 and 209th Street) already enjoy public sewer services. Consequently, Council may be faced with a decision of having to absorb this cost in order to promote a "single source" approach to the provision of sanitary sewer services. Other aspects of this discussion also focus on potential situations where the City, in order to become the single source utility provider, may have to directly connect properties already enjoying public sewer services to the City's system. Similarly, the City may have to bear the entire cost in providing a direct connection to individual properties in order to become the single source provider. Again, attempting to show benefit to users who already enjoy a public service would be a very challenging exercise. This, in turn, could lead to other potential situations where other township residents could request City subsidized connections in exchange for annexation. The extent and scope of issues associated with this possibility would continue to increase as private development activity continues to expand at City boundaries. Another facet of this same issue involves explaining/justifying to existing City residents the subsidization of township resident sewer connections. Likewise, attempting to explain the finer points of these policy issues to township residents would also be challenging. OPTION 3 - Policy Issues While this option may be highly preferable to Option 1, there are a number of policy issues that need to be reviewed. Several actions could be authorized by Council to mitigate some of the policy issues stated above. This would include authorizing staff to approach Hwy 3 properties to provide City water services. Should these properties accept City water, issues associated with the City becoming the default sanitary sewer system provider to a certain extent are minimized. On the other hand, if the properties rejected City water services, an alternate system connection design would have to be constructed that would exclude these properties (Hwy 3) from receiving City sewer service. CITY CODE ISSUES The Council will need to address several issues associated with implementing a single source policy in the delivery of utility services. As the City Code does not currently address or require a "single source" utility system approach, Council may wish to consider the following talking points and reasoning in developing a legislative approach to support a "single source" municipal utility system for both sanitary sewer and water services. . As township properties currently receive non-municipal public sanitary sewer system services, connecting an existing non-municipal public system infrastructure that already provides individual property sanitary sewer services to the City's system could be viewed as a system extension connection that promotes a "single source" utility service. . Along similar lines, the Council may wish to develop a policy that speaks to "single source" utility system connections as promoting jurisdictional accountability with regards to providing high quality, efficient and cost-effective public service delivery. . In terms of whether the City should bear the entire cost of connecting properties already on a public system should be addressed relative to negotiating a portion of the connection cost with the outside jurisdiction. Similarly, the Council may wish to address potential outcomes should the outside jurisdiction refuse to negotiate any portion of the cost. Essentially, Council will need to determine the relative importance of single source connections that would ultimately result in a transfer of ownership of an existing non-municipal system infrastructure to the City. . If Option 2 is selected, a similar code revision would be advisable to articulate policy goals relating to City ownership of the public service line, and a provision requiring that all annexed properties receive single source utility services from the municipality. The City Attorney will speak to issues associated with revising the Code to support long-term Council policy goals with respect to single source municipal utility service. If Council is willing to consider the development of a policy that would address system connections leading to a single source utility system, then Council would need to authorize the preparation of an ordinance amendment. In terms of direct sewer connection to properties already receiving public service that would need to be connected to the City's system, Council will need to consider an appropriate approach in this regard. While municipal system costs can be defined in terms of promoting "single source" utility services, arguments associated with subsidizing these connections would be more complicated and open to varying interpretations. Finally, given the fact that this particular issue is a separate and distinct issue from the private development proposal, option 3 will certainly impact the developer's utility installation planning and time frame. Consequently, Council will need to provide staff with direction with regards to the preferred option in order to facilitate efficient and responsive service to the private developer. BUDGET IMPACT Municipal system connections as outlined in Option 3 will, depending upon the level of contribution from an outside jurisdiction, result in additional costs to the City's sanitary sewer fund. Costs will vary based upon individual feasibility studies with regards to specific system connection solutions. Director Mann will present preliminary cost estimates associated with alternative sewer design scenarios at the workshop. ACTION REQUESTED If option one (1) is preferred, a meeting with the Township should be held to address the development of a joint powers agreement that would allow the township to provide sanitary sewer services to City residents. If option two (2) is preferred, a meeting with the Township should be held to address transfer of ownership issues and related service and billing questions. If option three (3) were preferred, Council authorization to formally offer water servIce connections to residents along the east portion of Hwy 3 currently served by the existing township would be requested. In addition, the preparation of a City ordinance amendment should be prepared to address the issues identified above. Relative to all three options, authorization for staff to contact the appropriate Township officials and consultants should be considered to move this matter forward. If option 3 is preferred, the developer will need to consider utility design changes as soon as possible. Council direction with regards to the preferred option, with authorization to take appropriate actions to facilitate the desired policy outcomes. itted, file From: Sent: To: Subject: Joel J. Jamnik [Joel@ck-Iaw.com] Thursday, June 01,200010:57 AM 'John Erar' RE: Revised Township Sewer Connection Options John, You asked us to research the sewer connection issue for township residents along 209lh Street should they annex into the City, Generally speaking, the City Code (8-2-4) prohibits private sewer systems unless the City system is not accessible to the property. The Code does not address other public sewer systems (such as those provided by Empire Township) within City boundaries. In this situation, the Code provisions otherwise requiring the owners of property served by private or community systems to connect are not applicable. There is a complicating factor present when township-provided sewer and water service is involved in an annexation. Under the annexation laws, an annexing City is viewed as succeeding to all the rights and obligations of the township in the affected area. For instance, town roads become city roads as a result of the annexation. VVhile I can find no direct precedent answering the question whether this general rule extends to town sewer lines, the state's electric service laws contemplate that the electric service does not automatically transfer, Additionally, it is not uncommon for one political subdivision to have utility lines that traverse through another political subdivision. In order to avoid future disputes, it would be beneficial if the City and Township could reach agreement regarding the status of the service lines in 209th, and specify that agreement in the record. -Original Message---- I;~=: ==::~~~~o~~~;~~~~~:~~aton.mn.u.l To: Andrea M. Poehler; Dave Olson; Joel J. Jamnik; Lee Mann Subject: Revised Township Sewer Connection Options Please review. 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