3.1 SR 01-10-2023 - Laserfiche WebLink

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From the desk of General Manager Mark Hanson Thoughts for the NE/NW urban services expansion discussion at the combined meeting ERMU’s focus should be on supporting the NE expansion area. o Consulting services to review infrastructure needs is included in our 2023 budget. o The city has already identified multiple development projects that are adjacent to the existing urban services area. o Building out from adjacent developments provides more direct cost-sharing of trunk lines by having developers pay to extend existing trunk lines to their developments. o In addition to roughly eight miles of trunk main, the NE expansion area will require a new well, treatment plant and water tower, likely within five years. o Project costs for the NE area alone are estimated at $32M and will require bonding. The NW expansion is cost prohibitive at this time, especially given the $32M needed to proceed with the NE expansion area. o Proceeding with the NW expansion simultaneously with the NE expansion would add approximately $44M in project costs, the majorityof which would require bonding. o Only one development project has been identified in the NW area and it’s located at the farthest point from existing trunk mains. No adjacent development projects have been identified at this time. o Connecting to this development project would require adding roughly five miles of trunk main to support a single, 500-unit development. This could lead to water quality concerns related to stagnant water in large trunk lines over long distances, especially in the winter, when water use is at its lowest. Financial prudence would advise waiting 10-15 years before tackling the NW expansion area o Waiting to move forward with the NW area provides time to pay down, and possibly pay off, bonds incurred to support the NE expansion area o Waiting provides time for interest to grow in developments adjacent to existing infrastructure, maximizing cost sharing opportunities and minimizing stagnation concerns. If we do wait on the NW area: o Commission and Council will need to decide whether to maintain the current urban services policy which requires: New developments withinthe urban services area are requiredto hook up to both municipal water and sanitary services. New developments outsideof the current urban services area are notprovided with either water or sanitary services. o Public works has determined the city has the capacity to provide sanitary services to support the development in the far corner of the NW expansion area (if the current urban services policy were to be updated). Should the urban services policy be updated to allow the developer to hook up to city- provided sanitary service but use privately-owned wells for water? Should the development be postponed until additional, future development efforts enable ERMU to incrementally build out to the far corner of the NW expansion area?