Loading...
City Council Minutes 06-27-1988 SpecialMINUTES - SPECIAL MEETING MONTICELLO CITY COUNCIL Monday, June 27, 1988 - 2:30 p.m. Members Present: Arve Grimsmo, Fran Fair, Warren Smith, Dan Blonigen, Bill Fair Members Absent: None 1. Discuss Options for Expansion of Water Reservoir System. Mayor Grimsmo requested a report from Public Work Director John Simola. Simola reported that the City Engineer working with the Public Works Department has developed a number of options for expansion of the water reservoir system. One of the options included development of a stand pipe reservoir on the Monte Club hill property. Simola reported that the Monte Club property is no longer being considered as a site for the reservoir as one owners have indicated that they are not interested in selling their property to the City. Simola went on to say that three alternative sites do exist on the hill east of the Monte Club, all of which are located on the Shultz property. Mr. Shultz has been contacted regarding the potential of establishing a standpipe reservoir on his property. As of the time of the meeting, it is not known if Mr. Shultz is interested in selling a portion of his land for use by the city as a site for the water reservoir. John Simola along with John Badalich of OSM, discussed other options for development of additional water storage capacity for the City of Monticello. Four other areas where discussed as being viable options and are as follows: 1. Site located near Hwy 39 and 118 on Chelsea Road. Property currently owned by Mr. Boyle. 2. Property located in Meadow Oak Development. Currently reserved for park dedication. 3. Property now owned by the school district. Site proposed would be on the Middle School grounds. 4. Property located on Dundas Road near the well #4 well site. Council discussed the various options for development of the water storage facility. Mayor Grimsmo asked what the owner of an $80,000 home could expect in terms of a tax increase if the cost of the $750,000 water storage facility expansion was placed on city taxes. Staff reported that the increase in taxes to such a home would be about $5 per year. Dan Blonigen noted the importance of the decision regarding siting of the water tower, and noted that long-term planning considerations must be taken into account when establishing the location of the facility. A discussion of the costs associated with each alternative ensued. John Simola reported that in the long run, the storage facility located on 1 Council Minutes - 6/27/88 the ground is much cheaper in terms of maintenance. Council member Fair suggested that each proposal be evaluated in terms of short term cost and long term cost and that other considerations regarding each site including the ability of acquiring the site in a timely manner and impact of the location in terms of the overall system be evaluated with report coming back to Council the at next meeting. Motion by Fran Fair to begin negotiations on terms pertaining to the potential purchase of of sites noted as viable sites for placement of the water storage facility, and direct staff to develop additional information regarding each site with the information to be available with the July 11, 1988 Council Agenda. Staff to make an offer to the Monte Club that is comparable to that which is being offered to Mr. Shultz. Motion seconded by Bill Fair. Motion passed unanimously. 2. Consider Proper Elevation for Water Storage Facility. John Badalich reported that the elevation he feels is the best for the entire system is an elevation of 1,105 feet. Badalich noted that on average, the pressure generated with this elevation would be 56 pounds and would produce a flow of 4,000 gallons per minute at the Industrial Park. Badalich noted that the proposed elevation and corresponding water pressures attempts to strike a balance between the needs of the industrial users and needs of residential users. The elevation proposed will provide provide adequate ".fire flow" serving the needs of the industrial areas, while increasing the average pressure experienced by residential users by 28 pounds, Badalich noted that the increase in water pressure may have an adverse affect on private plumbing of older residences and that significantly higher water pressure would exsist for homes along the river which would require installation of pressure reducing valves. At this point in the meeting Council and Staff discussed methods by which the problems created by the high water pressure can be mitigated. It was suggested that individual homes be tested prior to putting the new system on line. It was estimated that such testing would cost $150 to $180 per home. The City Engineer was asked by Council what percentage of the homes in Monticello will experience a problem with the type of water pressure increases expected with installation of the new reservoir. Mr. Badalich and his associate, were not able to make an estimate in response to the question. Council directed City Engineer to research communities that have experienced a similiar situation and report to Council what the City can expect in terms of impact of increased water pressure on residences in Monticello, especially those with older plumbing. It was the consensus of Council that the information that Badalich will gather will be used to develop additional costs associated with development of this system which will be included in the overall bond cost. A discussion regarding the potential of developing parallel water systems insued. It was suggested that the City might develop a system for the older portion of town which would be operated at a reduced pressure and develop a system separate from the older town system which 2 Council Minutes - 6/27/88 would operate at a higher pressure. It was noted by the engineers present that such a system may not be feasible and that long term maintenance costs of such a dual system would be exceedingly high. Council decided to continue this discussion at the July 11, 1988, meeting. Discussion to be supplemented by information to be gathered by John Badalich regarding impact of higher pressures on plumbing commonly found in older homes. 3. Consider Method of Financing Water Storage Improvement. Council reviewed the memo presented by OSM and Staff outlining the various methods by which the water storage facility can be financed. It was noted that the two most feasible methods included financing via water revenue bond which would be paid utilizing water system revenue and through payment of hook-up charges. As another alternative the project could be financed via general obligation bond which would be paid with tax funds. City Administrator Wolf Steller noted that in order to finance a water revenue bond, the water rates in the City of Monticello must increase three -fold, on the other hand utilizing a general obligation bond would require the need for a tax increase of about three quarters of one mill or about five dollars per single family home valued at $80,000. It was also noted that general obligation bond issuance would require a City referendum. After discussion, motion by Bill Fair to schedule a water storage facility general obligation bond referendum question for September 13, 1988. Motion seconded by Warren Smith and passed unanimously. SEE RESOLUTION 88-25. There being no further discussion, meeting adjourned. Respectfully Submitted, h,,r z�-,�� Jeff O'Neill, Assistant Administrator 3