9.2. SR 03-16-2020 - Laserfiche WebLink

Home Browse Search

Request for Action To Item Number Mayor and City Council 9.2 Agenda Section Meeting Date Prepared by Work Session March 16, 2020 Cal Portner, City Administrator Item Description Reviewed by Windsor Park 3 Septic Improvements Lori Ziemer, Finance Director Justin Femrite, Public Works Director Reviewed by Peter Beck, City Attorney Action Requested Receive information, provide staff direction. Background/Discussion The Windsor Park 3 Home Owners Association has been working with the city to find solutions to their failing septic system. You may recall, we provided some preliminary cost estimates to connect them to the proposed sanitary sewer extension to the Elk River Landfill to resolve their leachate disposal issue. They have also worked with Shane Steinbrecher of Steinbrecher Companies, Inc. for an upgrade to their existing system. An upgrade to their system appears to be a lower cost solution, however, they may not have a private financing option. Mr. Steinbrecher has proposed the city acquire a loan through the State of Minnesota Pollution Control Agency Clean Water Partnership Loan program, use the loan proceeds to make the improvements, and assess the costs of the improvements back to the benefitted property owner. For discussion-sake, Mr. Steinbrecher estimates the total cost of the improvement at $800,000 and there are roughly 88 parcels in this development for a per parcel cost of $9,091 plus interest, possible origination fee and/or a tax recapture of 105% similar to city requirements to account for bond repayment. All property owners would need to sign a petition and waiver agreement and the city would assess the costs back as a special assessment in accordance with city policy and the assessment agreements. Our current Petition and Waiver Policy would need to be amended to include this type of improvement. The Council also needs to consider that there are other developments with a similar need and any precedent could result in future loans. Financial Impact The use of the state loan is backed with a general tax obligation as we pledge our full faith and credit. Tax delinquencies may provide a payment deficit which would need to be made up with general tax funds. The city is able to charge an interest rate of 1.5%, which may cover staff administrative costs. The city has The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity