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02-22-10 CC WS MinCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, FEBRUARY 22, 2010 MINUTES 1. CONVENE CITY COUNCIL WORK SESSION • • r i Absent: None B. Review Agenda 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS Turgeon moved, Zerby seconded, approving the agenda as presented. Motion passed 4/0. 2. PARK COMMISSION CANDIDATE PHONE INTERVIEW - JOSH TRENT Mayor Lizee stated a phone interview was conducted with the final applicant. 3. WATER CONNECTION FEES Heck stated the Council has been discussing what to do with the city's water ordinance and water charges. Councilmembers requested additional information on the history of the water connection fee and information on what other communities charge. He noted staff discussed connection fees. He asked for Council input on how to proceed. Mayor Lizee suggested the Council review the seven questions beginning with whether everyone should pay the same amount for water service. Zerby believed $10,000 seems too high. He was unsure where we are going with this and whether there is a plan to expand the water service this year. Bailey asked why we would want to change. Turgeon stated if you are going to assess someone, it should be for the value. If the project doesn't cost $10,000, you shouldn't charge them $10,000. Lizee asked if there should be a separation of fees for the assessment and the connection. She indicated she feels there should be a clarification between the two. She noted there are fixed costs associated with the connection while the assessment is a by project cost. Woodruff understood if the service is already in the street, the homeowner has to buy a meter and pay an additional fee. Brown stated that is correct. The permit fee, meter cost, and hardware add up to around $250. Woodruff believes the current system is working and shouldn't be changed. Zerby noted everyone in the city has water already whether it is city water or a well. Bailey asked Finance Director Burton whether other cities had a policy similar to Shorewood's where there is an option to connect or not connect. Burton stated they are asking what other cities do. She did review what the city of Arden Hills' policy is for improvements and who is assessed. She stated staff is looking at the connection fee and not the accompanying costs. Copies of all the policies will CITY OF SHOREWOOD WORK SESSION MEETING MINUTES February 22, 2010 Page 2 of 2 Lizee asked what the current interest rate is and what is recommended. Burton stated the current rate is six percent, and residents can borrow from their banks at lower interest rates. If we issue bonds, we cannot charge more than two percent higher than the cost of the bonds. Bailey stated at some point we will grandfather people in at the $10,000. Nielsen stated one of the strategies would be to raise the connection fee and send a letter to the 200 to connect at the old rate. Turgeon stated if we would change policies would people pay more. Nielsen stated once the connection fee is paid, they are done. Brown stated at the time the Smithtown Road residents paid, they were under the impression they were done. If we chose to raise the rate, they would have to pay more. Turgeon stated if everyone is comfortable with the $10,000, Council should move forward. Bailey stated it is helpful to have as much information as possible. Heck stated it appears most members are comfortable with the current policy. The next question is providing information on why city water is a good idea, and he asked whether that is something staff should pursue. Woodruff stated it would be important to provide that kind of information to residents as we move forward. Turgeon stated it needs to be factual but very plain. Heck stated staff could work with outside sources to help with the information. Bailey stated it would be worthwhile to explore that depending on the cost. Heck stated lie would bring back additional information. Brown stated there is still work to do on cleaning up the ordinance. Lizee asked how many of the Councilmembers are okay with the $10,000 connection charge. Woodruff stated lie didn't want to change it, and Zerby concurred. Turgeon stated she would rather see it separated out to actual cost, but she went with the majority of the council. Lizee concurred. 4. ADJOURN Councilmember Turgeon moved, Councilmember Zerby seconded, Adjourning the City Council Work Session of February 22, 2010, at 6:55 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Clare T. Link, Recorder ATTEST: Christine Lizee, Mayor inistrator /Clerk