06-04-1984 CC MIN - Laserfiche WebLink

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City Council Minutes June 4, 1984 Page Four COUNCILME11BERGUNKELMOVED TO APPROVE THE REPLAT OF LOTS 1. - 8, BLOCK 3, BARRINGTON PLACE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 8. East Main Street Water Improvement - Public Hearing Counci1member Gunkel indicated that this public hearing is held to consider the replacement of the watermain between Gates Avenue and Evans Avenue. Counci1member Gunkel indicated that the replacement of the watermain was not a part of the Main Street feasibility study, therefore, no costs were available at the Main Street public hearing. Councilmember Gunkel further indicated that this was a public hearing to consider the project and not an assessment hearing. Counci1member Gunkel indicated that the costs for the replacement of the watermain are approximately $38,181. 00 which would amount to $1,765 per lot. Counci1member Gunkel indicated that becaus.e of the costs of the watermain replacement, the Utility C01mnission and the City Council met to discuss. how to pay for the project. Councilmember Gunkel indicated that it was determined that a split of 50 percent assessments and 50 percent water revenues could be used to finance the watermain improvement and that this method would be most appropriate. Counci1member Gunkel indicated that she would like the City Council to consider another alternative. Councilmember Gunkel indicated that even though the sanitary sewer is old and defective and needs replacement, it is proposed that no assessment will be made as the replacement costs can be paid out ofa revenue fund generated by the sanitary sewer utility. Councilmember Gunkel further indicated that the watermain is old and deteriorated but the utility does not have funds available for replacement. Counci1member Gunkel indicated that she would like the City Council to consider the possibility of using the funds generated by the assessment of the street replacement costs for financing of the watermain improvement. Councilmember Gunkel indicated that she felt it may be time for the City Council to consider this type of policy for replacement of old watermains, as there are not water utility funds available. The City Administrator indicated that the replacement of the sanitary sewer lines is also designed for re~routing to take pressure off of another area of the sanitary sewer line; therefore, it has a bigger purpose and difficult to define the area of benefit for assessment. The City Administrator indicated that the City Council must consider the whole project and that whatever policy the City Council decides will seta precedent for other areas within the City. The City Admin- istrator further indicated that it is legal to use the MSA funds as Counci1member Gunkel proposed. The City Administrator indicated that the assessment as proposed with a 50-50 split as compared to other projects, is not unreasonable and further inciated that the project as proposed is consistent with the School Street improvement project. The City Administrator further indicated that the monies replacing the MSA funds are proposed to be used for other projects in the City as proposed in the City's Capital Improvement Program. Mayor Hinkle indicated that based on the City's Capital Improvement program, the residents on west Main Street will be incurring the same costs as proposed for the residents on east Main Street in the very near future.