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091290 CC Public Hearing Min CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) . M I NUT E S CALL TO ORDER Mayor Haugen called the meeting to order at 7:30 P. M. ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover, Brancel, Watten, Administrator Whittaker, Finance Director Rolek, Noel Vogen of Associated Consultants, Inc. PUBLIC HEARING ON WATER TREATMENT SYSTEM FOR THE SOUTHEAST AREA WATER SYSTEM. Mayor Haugen opened the Public Hearing and advised the audience that there was a sign-up sheet for residents who wished to comment. She,then,-introduced Noel Vogen to explain the feasibility report. NOEL VOGEN OF ASSOCIATED CONSULTANTS, INC. . Mr. Vogen presented the Feasibility Report on Water Treatment for Iron Removal in the Southeast Area of Shorewood. Vogen said the Council had asked Associated Consultants to do a feasibility study for the well in the area. They found that the water is of good quantity but has a high iron level. It's iron level is 1.9 PPM of iron and the recommended level is .3 PPM of iron. Which means the water may be discolored and may stain fixtures and clothing, if not treated. The water is currently being treated with polyphosphates which combine with the minerals for a short time. However, after about two weeks the bond weakens and the water returns to its former condition. OPTIONS 2.1 Continue to treat with polyphosphates. 2.2 A 500 GPM filter either pressure or gravity. This will suffice at the moment. This would cost $378,000 or $385,000 with $157,000 and $170,000 respectively to upgrade to a 1,000 GPM filter. 2.3 . This is the recommended option. A 1000 GPM filter either pressure or gravity. The cost would be $435,000 and $508,000. (gravity) 1 CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) . 2.4 This option would add a softener to the system at a cost of $861,000 or $935,000. 2.5 This option uses a Lime/Soda Softener and would cost $1,593,000. Vogen indicated that the residents could continue to use the polyphosphates and add individual softeners if only iron removal were approved. Vogen said there are two ways to pay for this. The Southeast Water Area alone could be assessed or there could be a City-wide water rate increase. There will ultimately be 500 homes in the S.E. Area, which would mean an assessment of $133.00 per year or $33.25 per quarter. This is assuming a 5% debt service coverage and a 7 1/2% interest rate. The water rate would increase to an additional $.57 per 1000 gal. for the entire city. The entire City uses about 116 Million gal. per year. The operating costs would be $9700 per year which is less than the . current cost because less polyphosphate would be used. SIMON DOSTERMAN Mr. Dosterman asked Vogen what the advantages of a pressure vs gravity systems. Vogen said the gravity system can release dissolved gases, which the pressure cannot. However, gases do not seem to be a problem i nth i s we 11 . RESIDENT FROM THE AUDIENCE Resident asked if the water rate would go down as the number of users increases. Vogen said the operating proposed rate is based on current water use. Haugen said the water rate might not go down since some areas are without water and/or treatment; and,if the costs of those improvements also go into water rates, the costs will increase. RESIDENT FROM THE AUDIENCE Resident asked if they could pay in cash. Council said yes, it would be about $1000 per home as they would avoid interest if they paid their assessments up front. RESIDENT FROM THE AUDIENCE . What are the operating costs? Vogen said these costs are not included in the cost of installing the system; but, they would be less than current operating costs. :;~ , . . CITY OF SHOREWOOD COUNCIL HEARING MINUTES. SEPTEMBER 12. 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE 3 RESIDENT FROM THE AUDIENCE Resident asked, if this assessment is based on 500 parcels, are these the only home involved. Vogen said the cost is based on 500 parcels but only 300 are built right now. Shady Hills is now on the Minnetonka water system now but could hook up to Shorewood. There are vacant lots in other Subdivisions in the Southeast area that could be assessed. The resident asked if they will hook-up. Administrator Whittaker said they are included in the computations at the current time. LOUISE A. BONACH. SWEETWATER CURVE Bonach asked how Shady Hills would be assessed. Haugen said they are part of the original calculations. Whittaker said the City is not advocating anything just presenting the material. If Shady Hills is connected to the Shorewood water system, they would probably pay a connection fee. They paid for their water system at the time of installation. RESIDENT FROM THE AUDIENCE Resident asked if commerical businesses are assessed the same. said they are initially but they pay a higher water use fee. Haugen RESIDENT FROM THE AUDIENCE Resident asked if the older homes in the City will eventually hook-up. Haugen said the policy of the City is not to require connection to the water system. Some residents are much opposed to a City water system. But, new developements have to provide a public water system. Councilmember Stover said that in an overall water plan, another watertower would be in the vicinity of Minnewashta School which would serve the western areas of the City. The Southeast Area tower is designed to serve the entire eastern area eventually. RESIDENT FROM THE AUDIENCE Resident asked if the new filter system would be able to handle any new homes. Vogen said that it will handle the Southeast Area at its saturation point. Vogen pointed out that the filter system would be at the current pumP house, close to Silverwood Park. The building would be a little higher and longer than the existing building. They looked at two other sites: one closer to the watertower and one close to the commercial area. However, they wou.ld need raw water lines from the pump house to the treatment plant and this would be very expensive. . . . CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) SPEAKERS SIMON DOSTERMAN-WATERFORD PLACE: Mr. Dosterman said he was flabergasted by the notices that were sent out. He said the water has been consistently poor since they went off the Minnetonka Water System. He wants to do this fairly and thinks that a water rate increase throughout the City is the fairest way. The same water at the same price for everyone on any City water system. He has already installed a softener system and doesn't think another system is necessary but will go along with the majority. BOB SNYDER-CHARTWELL HILL Snyder said the cost would be $1300 per parcel over 10 years and the water increase would be $.57 per 1000 gal of water. This is based on 500 parcels. He asked what constituted a parcel. Vogel said a parcel is a piece of land able to be built on. Does this include Shady Hills? Whittaker said Shady Hills was included in the 500 homes proposed to be served by the treatment plant. Councilmember Gagne said that only the people who are currently affected were invited to this meeting. Snyder asked when Shady Hills would connect. Haugen said the City of Minnetonka will give notice.to Shorewood if the water will be cut off. Snyder asked what was the original agreement with the developer? He said the pipe and the softener were in the original plans, why weren't they included? Haugen said the developer was just required to provide safe drinking water. Snyder wants the development agreement from the Staff. He felt the City should ask the developer to provide quality water. Snyder also wanted the storage building removed. He said obscene materials were found there and it is a nuisance. Haugen said they are removing it. Snyder asked if the system would be noisy? Vogen said it would be no more noisy than the one they now have. Snyder asked Watten what the impact on Silverwood Park would be. Gagne said there has been discussion at the Park Commission meetings, and they are not happy about it. Whittaker said they have said they can live with the plan. Stover asked Snyder if he wanted the system. He said his water is lousy. RICK BERNETT - MCKINLEY PLACE Bernett asked about the City's average water consumption. Rolek said he had calculated it. There is a $22.00 minimum charge for water in most cities. Average use is 20,000 gallons per quarter per home. Bernett said he was opposed to a softener and would prefer a rate increase to pay for iron removal. 4 CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) . JOHN KLINE - NEAR MOUNTAIN Kline just moved to Minnesota from Troy Michigan and can't believe the bad water in the Land of 10,000 Lakes. His water rates are triple the rates in Michigan. He won't let his family drink the water. He is In favor of a filter but no softener because he already purchased one. Vogen said the water was tested under the Safe Water Drinking Act specifications and is safe to drink. KRISTINE RICE - CHARTWELL HILLS Rice said her water is fine and she doesn't want to be assessed. She has other concerns and this is not timely. She had two questions: 1. If other communities have this problem. Who are they and how is the money raised? Does the City or the developer pay? 2. Why weren't these problems looked into when the watertower was built? 3. What problems will occur in the future? . Stover said Tonka Bay just put in a watertower and treatment plant and assessed it. Minnetonka has City water and softening and it is assessed. Whittaker said both cities are happy with their systems. Haugen said that people with wells in this area also have problems. Stover said when they first became involved with wells in Boulder Bridge and Amesbury, there was never a complaint about iron content. So they didn't expect any problems with the S. E. Area well. JOHN CLINE - MCKINLEY PLACE Cline asked what other problems could occur. Vogen said some wells with high iron can become infected with bacteria. Usually this is a screen well. However, this is not a screen well and he could not think of any other problems. Whittaker said the City and developer were aware that there was an iron problem, but it was an economic decision not to install a filter. The water met health standards. BOB SNYDER - felt the City should dig a deeper well. Vogen said there is an aquifer below the Jordan aquifer but there is no guarantee the water would be better. Gagne said the residents of Boulder Bridge have sophisticated softener systems installed in the houses which they paid for. Stover said there are no complaints about the Amesbury water system. KATHY SWANSON - VINE RIDGE ROAD . Swanson checked with other cities to determine the systems they have. Minnetonka, Plymouth, Brooklyn Park all have iron removal systems. Plymouth and Brooklyn Park financed them through rate increases. She felt individuals could soften the water and she would rather not be ~ J CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) . assessed. She asked why the City was using 10 years for the bonds and not 20. Whittaker said 10 years was used for the estimate as it may be difficult to sell bonds with a 20 year term for a project of this nature. RESIDENT FROM AUDIENCE Resident said he was currently paying $23.00 per month for iron removal and the City cost would be less than 1/2 of that. Haugen said there are limitations on bonds Whittaker said the City would look into the financing when they were sure the project would be done. Watten said the debt service cost gets high for longer term bonds. SWANSON asked Vogen how other cities do this. Vogen said he mainly deals with utilites, who pay in cash. Councilmember Brancel asked if TIF can pay for this project. Whittaker said if the revenues exceed expectations, then water treatement can be included. Brancel asked if the residents bills are then rebated. Stover asked if the water rate could be reduced. Whittaker said the project should be included in the TIF bonds as we cannot sell bonds to give rebates. Rolek said it could, however, be refinanced with TIF bonds at a' later date. This would not help those who prepaid their assessment, however. LOUISE BONACH - SWEETWATER CURVE . Bonach said her neighbors feel the City will do whatever they want. She feels the water is terrible and wants a rate increase but no softening. She said her neighbors are also disgusted. BRAD ELLIOT - ELBERT POINT Elliot asked if the odor is related to the iron. Elliott believes they need the system. He thinks Shorewood won't agree and it will be expensive. time frame will be for construction. Vogen said year. Elliott asked Whittaker if he Whittaker said a hearing will all benefited parcels will be Vogen said yes. the rest of He asked what the from 9 mos. to 1 could get proof of the parcels. be held before anything is assessed and identified. RESIDENT ASKED - when a decision will be made. Haugen said the City Council will discuss it at the meeting on Sept. 24, 1990. ROSE HARRISON - CHARTWELL HILL Harrison moved to Minnesota from another state and was expecting the quality of life to be excellent. She was appalled that more people had not attended ,the meeting. She cannot launder her clothes. She said she will install her own system but will ask for a rebate. She feels clean water is a basic service of a City. . MARK FRIEDLAND - MUIRFIELD CIRCLE He is not in favor of a softener and wants a water rate increase to pay for iron removal. He asked Vogen what is the finite life of the 6 . . . CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) system. Vogen said 25-30 years. They can then be reconditioned at a relatively low cost. Friedland asked if there are 500 parcels included and only 400 hook up who pays for the others. Council said the City carries the debt service costs until the others hook-up and pay. KEN HOUSTON - MUIRFIELD CIRCLE He is in favor of a filter but no softener. He wants it done quickly and economically. He would also like a copy of the budget. Rolek will send him one. DICK MAHAFFEY - 6020 CHESTNUT COURT He has lived here for one year and lived in many other cities. He thinks the quality of water in Shorewood is bad and wants something done. He has already installed a softener. He asked Council how many residents have water systems. He felt Council didn't care about residents with water systems. He said the Council members who wanted to stay in office should care. He wants it done right. He asked if the whole City paid the same fire rate and if any other systems are connected with Shorewood. Haugen said the City paid one fire rate for all residents. The Cities of Tonka Bay, Minnetonka, and Chanhassen are interconnected with Shorewood. MAHAFFEY - asked what the taxes are spent on. Rolek said most of the taxes are expended for police, fire, roads and parks. Mahaffey also felt the S.E. Area residents would be doubly taxed if the City pays for the undeveloped parcels. KATHY SWANSON - asked about landscaping. Haugen said this will be done in the final stages of planning if the improvement is ordered. JIM SULLIVAN - COVINGTON He said he has a softener and a green sand filter system. He is in favor of the filter and the softener. He said it would be more economical to have the City soften the water. A softener system uses a lot of water and he would cut his water consumption if the City softened and treated it. RESIDENT FROM AUDIENCE Resident asked if a resident had to payoff the assessment when he sold his house. Haugen said this can usually be negotiated with the buyer. TOM PIERCE - He is in favor of the filter system and so are two of his neighbors. He works in Eden Prairie next to the City water treatment facility, He said the softener holding pond is unsightly. He would like to see a decision made quickly. .~ i . ~ . CITY OF SHOREWOOD COUNCIL HEARING MINUTES. SEPTEMBER 12. 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE 8 Gagne said he has been on the City Council for ten years. Half the discussions at the City Council meetings center around water.He listens to everyone. No one wants to pay for water. He feels it is time for the City to get a water system. He has not made up his mind, however, on iron removal. Haugen said the City held neighborhood meetings a few years ago on a water system. The 89% of the residents voted no. She said times have changed and the Council's attitude is changing. Stover said this project is in the early stages of development and many other people will come in a year from now and say no. She said she is a hold-out for private wells. She feels that no one who currently has their own system wants City water; the water fund has never been in the black. The water system should be self-sufficient. She wished more people had attended the meeting. The survey that was sent out only had a 30% response. Brancel said that water has always been a controversy in this City. She would like TIF to pay for it. She has not decided on a payment method for the water treatment. Watten said he has a shallow well and a 100 gal. pressure tank. He feels it would be an inequity if there is a rate increase. The City should assess the area. He wants to look at treating all the wells. BOB SNYDER - Snyder felt it is better to pay the assessment, then the area residents won't have to pay if the City adds other systems in the future. He wants an agreement in writing from the City. He doesn't trust the Mayor. Haugen said developers have all paid for the pipes in the developments and the City would pay for the trunk lines. The original water plan is no longer valid because of all the new systems. A revised plan is being prepared. TOM PIERCE - Pierce wants to settle the issue one way or another. RESIDENT - Resident asked what would happen if the well was used city- wide. Vogen said the S. E. Area Well is only for that area. Resident also asked if the park would be delayed. Watten said priorities have been established on the Parks and they will be honored. SULLIVAN - He said the water rates are an Ordinance and will require public hearings. It may be years before anything is done. A city wide filter system might be necessary. Haugen said this matter will be discussed at the Council meeting of the 24th. The record will be kept open until the 21st. D . . . CITY OF SHOREWOOD COUNCIL HEARING MINUTES, SEPTEMBER 12, 1990 COUNCIL CHAMBERS MINNEWASHTA SCHOOL PAGE (PAGE) PUBLIC HEARING CLOSED. Haugen showed the Council a letter regarding water meter bids. Nothing has been decided yet. ADJOURNMENT Brancel moved. Stover seconded, to adjourn the meeting at 10:00 P.M. Motion carried - 5/0. c:;