Worms gave an introduction of Council and Staff.
Scott Lange reviewed the project purpose, funding options, and solicit public opinion. No action was taken at the meeting. Lange mentioned all phases of the USDA Rural Development projects.
Attached to these minutes are the documents presented at the hearing.
Lange reviewed the City’s funding proposal of using a Capital Improvement Charge on the utility bill opposed to using the general levy or assessments which both are less equitable.
Worms move and Goebel seconded to open the public hearing at 7:48 P.M. Motion carried 4-0.
Gary Pierskalla asked about if more wells would be drilled. Lange stated that no additional wells will have to be drilled.
Rodney Atkinson asked about an estimate of the monthly fee and Lange responded that the amount would be $20 per month per EDU. Atkinson further asked if there was consideration of raising the water rates, and Lange said that is in consideration but that the flat fee concept was based on the overall grant influence of fire protection and the equally fire protective benefits of a water tower with greater capacity and pressure.
Keith Fischer asked if a property is sold, would the amount have to be paid off such as with an assessment. It was noted that assessments themselves do not have to be paid off at a point of sale, but it is usually a condition requested by the buyer. The structure of paying off the amount per property could be designed with flexibility considering that there is no call date for the USDA loan and therefore early pay-offs could be dedicated to the USDA loan in turn saving interest on the loan.
Rodney Atkinson noted that the charge would be applied whether one used water from the tower or not, so those with sewer-only accounts would also be charged. Lange again noted that the concept was primarily driven from the benefit of fire protection, but that water usage could be considered and was considered in the equivalent dwelling unit calculation.
Phil Osendorf asked about the status of the City’s savings funds for such projects. Hetland explained that the monies saved over the years were largely spent on other necessary public improvement projects in the last few years and due to the economy, rates were not raised to provide economic relief. Hetland noted that approximately $85,000 remains in the Water Fund and it would not be an adquent amount in making a major difference in funding the tower. He also noted that because of the City’s debt service burden and lower population based on the 2000 Census, was the reason the City is expecting the maximum amount of grant money and why the process began in the first place.
Gary Pierskalla asked if there were additional monies for other projects. Lange responded that the grant is suggested to be applied to the other two major projects and will be used with assessments and funds from Stearns County in the case of the County Road 11 project.
Ron Gruber asked about the breakdown of USDA grant and loan monies. Lange stated the splits between the loan and the grant.
Jackie Atkinson asked how many households or businesses are currently in the City. Lange responded that there are 265 residential and 66 business equivalent dwelling units (EDUs) for a total of 331 EDUs.
Keith Fischer asked if the upgraded water main would be paid by the adjacent property owners. Lange responded that the intention is that the property owner would pay for the replacement of a 8” water main line but the difference of the upgraded 10” carrier line installed would not be paid by the property owner in assessments.
Jason Scherping asked if the water quality would improve. Lange responded that the added pressure will improve water quality in many areas, but that the deadend lines would still face water quality challenges due to stagnant water and collected iron particulates.
Fritz Laing asked if the water pressure will increase. Lange stated that the increased height of the tower has not been set but pressure would increase. The balance needed is to increase water pressure without an adverse effect on water main and service lines and connections.
Dean Jungles asked how it was determined where the tower would be located and the design and size of the tower. Lange noted that the design was chosen as the most cost effective and efficient design, similar to the current towers located in Avon and Holdingford. The size of 200,000 gallons was determined based on the City’s current usage and projected used with the City’s current growth percentages. As for the location of the tower, several locations were considered in the City but they either required land purchases or created other economic considerations. The proposed location is currently owned by the City and while located in the Industrial Park, it would aid in attracting further economic development.
Rodney Atkinson asked about how the increase in water pressure would be determined. Lange noted that the design has not been determined on bringing greater pressure without the negative effects of too much pressure.
Rodney Atkinson asked about the highest EDUs in the City. Lange stated that they were Charlie’s Café, Famo Feeds, the Corner Pub, Ackie’s Pioneer Inn, and the apartments along County Road 11.
Lange mentioned and Worms confirmed that the public hearing will remain open until the February 23, 2010 regular monthly meeting.
At 8:19 P.M. Worms moved and Goebel seconded a motion to adjourn the meeting. Motion carried 4-0.
