HomeMy WebLinkAbout1996-07-02 SDC MINSDC Minutes -- July 2, 1996 Meeting
3:30 p.m. Council Chambers
Committee members present included Don Laws, Larry Medinger and Ken Hagen. Staff
present included John McLaughlin, Susan Wilson Broadus, Jim Olson, Paula Brown, Jill
Turner and Lynna Batters.
Correction to the minutes from May 14 -- Hagen voted no on the Transportation SDC
motion. Similarly, Hagen voted n__qo on the Water SDC motion on May 15. Hagens concern
is that just because no project is defined that doesn't mean the City shouldn't be ready for
when one is established.
Laws said he hears concerns from staff and Council regarding future water supply and
transportation costs. His observation is that the committee is in favor of covering such
projects once they've been defined. A provision should be included in the resolution that
once a supply plan is adopted and an amount is designated to growth, it will automatically be
included under the appropriate formula. Hagen said we currently know we will have
transportation and water costs. Laws disagreed, saying we don't know about water. Hagen
said state law will demand water because the reality is, growth will continue.
Turner suggested the committee discuss what has been included: $500,000 for water rights
and a pipe upgrade from Reeder Reservoir to the water treatment plant. Those two projects
are on the water supply list.
Laws recommended tying SDCs to a project when it's adopted and not putting aside money
for something nonspecific. Hagen clarified that the present SDC assumes zero until the
project is adopted.
Medinger said that the builders concerns are that the methodology is correct, that the money
is spent for what it was collected for, that people are charged correctly and that costs are
attributable to growth.
Medinger had a question on the ordinance on page 9, 4.20.085 section 6 #B and the section
below that--he didn't understand what it meant. Turner said it's an exemption. Turner will
work on the wording, but the essence is that a property would not qualify for an exemption if
the request came within three years of annexation.
(Darrell Boldt and Sid Field arrive -- 4 p.m.)
McLaughlin added that the section to the ordinance being discussed was also added so there
would be less of an incentive to do low income housing on property outside the City limits,
therefore encouraging infill. Medinger noted that the ACCESS project for affordable
housing is at the edge of the City, thus, affordable housing is discouraged. He added that
this town makes too much of annexations. Therefore, let the minutes note that this
(Section 6 B) is not this committees recolnmendation. Laws clarified that the language
should be taken out altogether from the ordinance that comes from the committee.
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Medinger questioned the credit process as noted on page 12. Turner said the City Engineer
will be involved in the pre-app process so the builder becomes aware of the possibilities.
Medinger said that credit issues may come to light after the pre-app process so the addition
of language allowing the credit process to begin upon "written notice to the City Engineer" is
recommended.
WASTEWATER
Brown explained the packet of information on the wastewater treatment plant. The packet
includes more details on future growth issues than have previously been available. Phase II
includes some growth issues that carry through to phase III. Phase III is primarily growth
related. All of phase I uses existing components. Phase II adds the aeration basis, which
Browns best guess estimates to be 10% growth related. In phase III the clarifier is definitely
growth related, as is the storage and irrigation system. The sludge thickener and lagoons are
also growth related (although the project may not actually have lagoons, but it will have
something to serve the same purpose). The majority of phase III is growth related, taking
the capacity to serve through 2015.
Medinger asked what happens in 2015. Brown said maybe nothing. However, in doing a
facilities plan it is customary to project out 20 years. The next increment may not kick in
exactly at 20 years, but it will kick in at some point. She also noted that maintenance and
repair were not added in to the figures. Laws added that technology and regulations also
influence what needs to be done.
Boldt asked how accurate the phase III numbers are. Brown said they're not as close as
she'd like. There is a margin, or contingency, of 25%.
Medinger said his main concern is that the population who pays gets distributed and charged
correctly. Brown said she thinks the percentages are close because the City could limp along
with its current system for a long time without growth. The Council is scheduled to approve
the plan at tonights meeting. Turner added, it is hoped that the design engineers will start
their work by August 15.
Turner said that Brown's estimate for SDCs is about $600 more than presented. Laws
clarified that using Brown's figures the cost associated with growth goes from $3 million to
$4.8 million. Turner noted that in contrast to what has been used in the process so far,
Brown's estimates are in future dollars.
Hagen moved to update the wastewater SDCs to the new numbers presented by Brown.
Medinger seconded the motion. Ayes all.
WATER SUPPLY
Hagen said that before Boldt arrived he voiced concern about not collecting SDCs because no
project is defined. The known variable is that the City will need additional water, the
unknown is what the source will be... Medinger said it's Council policy that we have
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adequate supply now. He wants a program defined before it's charged for. Define the
population to be served and then have them pay for it... Hagen said that to assume "0" is
flawed as well... Laws said the water supply includes water rights acquisition & the pipeline
into the water plant "and any other project approved by Council in the future can be added
then." ... Medinger doesn't like the automatic part of that. He said it won't take that much
to call the committee back together... Field added that the public has to let the Council know
what it wants. He asked how you can collect money when there isn't a project for it?..
Hagen said that just because there isn't a known project, that doesn't mean there won't be a
cost.
Laws said it could be that in the future costs will be cheaper. As a Council we're going to
have to justify what we ask for... Hagen said he's not saying to charge the max, but zero
isn't right either.
Medinger expressed his observation that transportation is increased by rich people displacing
poorer workers that now commute to Ashland to work.
Laws stated that when new plans are adopted SDCs need to be reviewed within 90 days.
WATER DISTRIBUTION
Turner has recalculated the SDC charge using incremental cost instead of a capacity charge.
Pages 33-34 of the bound packet has the recalculation. Using incremental cost the cost
attributed to growth is $718,000. Previously $3,231,022 was being used. Incremental cost
is much lower per single family residence. The charge was $160 and it has dropped to $21.
Laws said that one staff member has said that with the new methodology not enough money
will be available for the projects that will need to be done. Therefore, he doesn't like the
methodology, or he questions the methodology... Medinger commented "so the City won't
have the windfall." McLaughlin corrected that it's not a windfall but rather a cost shift.
The existing population will end up paying more.
Hagen thinks unused capacity will likely serve new growth or go unused... Laws asked how
much growth is costing the City. If there wasn't any growth there wouldn't be a need for
new pipe and the existing population wouldn't pay anything... Therefore, per Boldt, this
committee wants to stay with the incremental calculation. Turner reminded that it hasn't
been figured that way in the past.
Laws moved to approve a new water distribution SDC methodology based on
incremental cost. Boldt seconded the motion. Medinger, Laws and Boldt voted yes.
Hagen voted no.
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STORM DRAIN
Turner said that engineering costs had been added in twice and that has been corrected. A
North Main to Walker project has been started so it is included in the cost estimate, whereas
the Normal Street project is partially completed so it has been deleted from the list.
Hagen noted that for future considerations, regardless of regulation, storm water treatment
will need to be addressed. Needing to treat it at all will have to be addressed in the future.
The storm water shouldn't flow directly into the creeks... Medinger added that there is a real
need for the City to look at the health of the streams in the City.
Turner asked if storm drains are okay as presented -- yes.
PARKS
Turner noted that the North Mountain Park acreage allocation changed a bit and recent
acquisitions have been added. She noted that the "passive park" reimbursement fee was
based on what had been paid, adjusted by the CPI index. The changes result in a fee close
to the original calculation.
Laws asked if the packet used today would be augmented for the Council. A summary of
differences is needed, preferably at the front of the document to help with clarity.
Laws moved to approve the transmittal with today's amendments to Council. Medinger
seconded the motion. Ayes all.
Boldt asked if the committee should address the political ramifications... Medinger said that
transportation is the biggest question, along with annual payments vs. up front payment.
Meeting adjourned at 5:20.
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