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11-14-11 CC WS Mtg MinCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, NOVEMBER 14, 2011 MINUTES 1. CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor Lizee called the meeting to order at 6:08 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Hotvet, Siakei, Woodruff and Zerby; Attorney Keane; Administrator Heck; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and Engineer Landini Absent: None B. Review Agenda Zerby moved, Siakel seconded, approving the agenda as presented. Motion passed 5/0. 2. WATER CONNECTION FEE Administrator Heck stated Council has discussed the topic of the water connection fee 2 — 3 times over the last couple years. He explained that recently there was a property owner who was interested in connecting to the City's municipal water system but didn't want to pay the $10,000 water connection fee because he thought it was too high. The owner asked Council to consider reducing the fee. Fleck explained the meeting packet contains a memo on the City's water policy. It describes the current status and options Council may want to consider when looking at the water policy. The packet also contains a copy of a 2010 memo by Director Nielsen on the history of water connection fees; and, the costs of the installed water system infrastructure e.g., wells, well houses, filtration plants, water towers and controls by Brown and Director DeJong. There are also two maps. One shows the watermain connection fees. The other shows connections to the watermain as well as where access is available but property owners have not connected to it. Approximately 48 percent of the City has city water. That increases to about 50 percent if the properties where access is available but not connected are included. A legal opinion from Attorney Keane was sent out separately. Heck stated Council wanted to be provided with an Brown sent that out under separate cover last week. was sent was the 20 -Year Water Plan overlaid on tl will be worked on over the couple of months. updated 20 -Year Water Plan. He thought Director Brown clarified that was only sent internally. What ne 20 -Year Pavement Improvement Plan. The costs Heck reviewed a list of questions he wanted Council to address. I) What is Council's goal or objective in discussing and possibly changing the water connection policy? 2) Does Council have a goal of encouraging properly owners who have access to watermain to connect to the water system? 3) Does Council want to have some type of policy or system that allows for watermain to be extended more CITY OF SHOREWOOD WORK SESSION MEETING MINUTES November 14, 2011 Page 2 of 6 efficiently throughout the City? 4) Does Council want to continue with the current cost system which is based on a fairness /equitable standard? Mayor Liz& commented it's of benefit for Councilmembers Ilotvet and Siakel to be provided with some history of the City's municipal water system being they are about to complete their first year as Councilmembers. She explained that the Cities of Excelsior, Minnetonka, Tonka Bay, and Victoria have city -wide municipal water. She recommended the 20 -Year Water Plan be updated, noting the current one was developed in the mid 199os. That Plan should identify benefits of city -wide water and potential problems that could be encountered with extension of the water system. Council and Staff need to decide how to bring the City's residents in on those discussions. Liz& stated based on the information provided, the value of the current water system is approximately $3.359 million. She asked Director Brown and Engineer Landini to estimate the cost of 'fully extending the municipal water throughout the City. Having both of those costs will provide a true per - parcel cost of city water. She suggested doing that before Council discusses revising the water policy or changing the connection fee. She noted she has a hard time with the word fairness because fairness has different meanings for people. Councilmember Zerby stated he was surprised to find out there are 272 properties that have access to municipal water but are not connected to it. He expressed a desire to try and get those property owners to connect. He questioned if the connection fee is too high and therefore a deterrent. He stated he thought it prudent to expand the municipal water system throughout the City so all residents have access to safe water. He noted there have been numerous reports from residents indicating they have arsenic in their well water. Having access to safe water is more important than ever. He stated he would like to come up with a plan to expand the system at a faster rate than it has been expanding at during his 18 -year residency in the City, nine of which he has served on the City Council. Mayor Liz& stated the current water policy doesn't require property owners who have access to municipal water to connect to it, even if they are trying to sell their property or transfer the title of the property. She then stated the ground water supply is growing more precious as time goes on and more problems are being found with it. She noted there are two residents in the audience this evening who she met with at her recent coffee with the mayor session and they have submitted a petition from their neighborhood regarding municipal water. She commented that one of the sages of Shorewood once said residents don't water until their well goes out. She recommended taking a comprehensive look at the cost for the municipal water system and then discussing how that affects the water policy. Councilmember Hotvet stated she was a member of the Ad Hoc Trail Committee comprised of representatives from Council, the Park and Planning Commissions, staff and residents. She suggested Council consider establishing a similar type of ad hoc committee for municipal water. Councilmember Siakel stated the water connection fee is just one piece of a larger plan. She expressed a desire for Staff to prepare a more comprehensive plan and estimate for the cost of city -wide municipal water. She noted she would like to connect to city water but it's not available to her. She explained when her power went out the other day she had no access to her well water. If the City had a reasonable plan to extend watermain into her neighborhood she would try to entice her neighbors to support it. She noted she would like watermain to be extended. She stated she also wants the 20 -Year Water Plan to be updated and she wants to be provided with the total cost to extend the municipal water system city wide. Councilmember Woodruff stated the water policy, including the connection fee, has been discussed a number of times during his tenure on the Council. From his vantage point there is no good solution for what to do about this. He then stated he is sensitive to the City mandating residents spend money for CITY OF S14OREWOOD WORK SESSION MEETING MINUTES November 14, 2011 Page 3 of 6 something they don't want and won't use. Based on past experience watermain extension typically costs properly owners $7,000 — $9,000 in assessments. If a resident has a failing well or if there is arsenic in their well water they may think extending watermain is a good deal. But, if their well is working properly to pay $7,000 — $9,000 for something they are not going to use is not such a good deal. Council may want to discuss delaying assessing the property owner for the watermain extension. He went on to state there are two issues for discussion: the cost to extend watermain throughout the City and what to charge property owners for that. Mayor Lizee asked Council if it has any interest in having a discussion about an updated 20 -Year Water Plan which would include costs and timelines. In response to a comment from Mayor Lizke, Director Brown explained to cost out 20 -Year Water Plan is not too complicated. Brown then explained cities have tried putting in dry pipes in the past and that failed from a mechanical perspective. The links and connections have to be put in at the same time. He noted that since the 20 -Year Water Plan was developed years ago some of the links have been constructed. He explained it will take at least a month to estimate the costs for a city -wide extension of watermain and it will require assistance from WSB & Associates. Councilmember Siakel asked what happens when property owners want to be able to connect to city water but the roadway in front of their property isn't scheduled for reconstruction for many years. Director Brown explained that changes as the condition of the roadway changes and as the City's plans for reconstructing it change. He cited the example of Arbor Creek Lane near Grant Lorenz Road. It's a fairly new roadway. If the residents told the City they would like to connect to city water his first approach would be to try and negotiate an easement off the roadway to install water main in order to keep its investment in the roadway. Water still has to be brought to the other side of the roadway. For residents along Wiltsey Lane or Pleasant Avenue, which are gravel roadways, the challenge world be where to extend the watermain from. Councilmember Woodruff stated if 67 percent of the property owners in an area petition for city water Council would have to entertain their request; it does not have to grant the request. He then stated Council can decide to extend watermain down a roadway even if the roadway is not scheduled for reconstruction. Under the current water policy the property owners would have to have to pay the full cost for that extension. He asked Staff to research how many of the 1420 parcels connected to the city water system were part of a development where water was put in as part of the development. He stated that would be different from property owners who connected after watermain was installed as part of a road reconstruction project. Councilmember Siakel asked if there has been any discussion at the state level about mandating the installation of city water. Director Brown stated he didn't think the State will mandate the installation of city water. Attorney Keane explained in the metropolitan area there are two primary aquifers that serve the deep municipal wells. The Metropolitan Council has been in the process of evaluating the drawdown and recharge sustainability of them. Ile did not think the Met Council has reached any conclusions. He then explained part of what drives the momentum for public services is the safety of the water resource. He asked Director Brown how deep a customary residential well is. Brown explained most residential wells tap into aquifers that are 118 — 140 feet deep and municipal wells generally tap into aquifers that are 330 — 640 feet deep. That deeper water is less susceptible to surface contaminations. Administrator Heck explained rather than a State agency mandating that cities extend municipal water to residents State law allows cities from preventing businesses or residential property owners from drilling CITY OF SHOREWOOD WORK SESSION MEETING MINUTES November 14, 2011 Page 4 of 6 wells when municipal water is available. He then explained that this past summer Hennepin County Board of Commissioners had several meetings to talk about municipal water. He stated the City has the opportunities to extend watermain from other cities' municipal systems. Heck summarized what he believes Council has asked for. The first is what, if anything, can the City Council do to encourage property owners who have access to city water to connect to it. The other is an updated 20 -Year Water Plan with costs and timetables. Councilmember Zerby stated there should be a 'focus on getting those people who could connect to city water to do so. Being there are 272 properties with access to water but are not connected to it is an indicator there is something wrong with the water policy or that the connection fee is too high. He expressed his desire for Staff to prepare a plan for delivering city water to as many properties as possible at a cost that is as low as possible with a connection fee that attracts property owners to convert from well water to city water. He explained the City's roadways are aging; most of them were built in the 1970s and will need to be replaced in the next 20 years. Twenty five years from now he doesn't want residents asking why the City didn't extend water service when the roadways were replaced. He stated it's prudent to tie the extension of the system to the 20 -Year Pavement Improvement Program. He then stated it would be helpful for residents to have a general idea of when the roadway in fi - ont of their home will be reconstructed. That information could help them in making decisions about how much to invest in repair and maintenance of their wells. Councilmember Woodruff stated Council needs to discuss whether or not the City should, or can, require people to connect to City water. Councilmember Zerby clarified he is not suggesting the City require property owners to do that. Woodruff stated even if the City did not assess property owners for watermain extension or charge a fee to connect to the water system they still have to pay $2,000 — $4,000 to get the water to their house. Also, there is a cost of around $1,000 to decommission their well. They also have to pay for the water. He believes Council needs to discuss that. Zerby stated $2,000 — $4,000 is in line with what it costs to replace a well, noting he did that in the last year. Zerby then stated his first home was 90 years old and it was hooked up to the Minneapolis water system and he didn't have to replace the pipe. Mayor Liz6e stated it's time to review the City's water policy and bring it up to date with the direction Council wants to go. But 'first the 20 -Year Water Plan needs to be updated. The Plan should be shared with the residents and their input should be solicited. She suggested Council take that leadership position. She stated that once the cost estimates for extending the water system city wide have been identified those costs can be added to the funds spent to date on the water system infrastructure and the cost per parcel can be calculated. She asked Director Brown and Engineer Landini if they along with WSB & Associates could have expansion cost estimates ready for a February 2012 Council work session. Brown responded that could be done. Councilmember Siakel stated it may be beneficial to communicate to residents the facts and details behind how the $10,000 connection fee was arrived at. Councilmember Woodruff stated Staff went through a lot of work to develop a water brochure. He asked if the brochure is lacking information. Councilmember Siakel stated she has not seen that brochure. Mayor Lizee stated it's her understanding that Council wants to be more proactive when it comes to extending the water system rather than just reacting to the 20 -Year Pavement Improvement Plan or petitions that come in. Once the 20 -Year Water Plan has been updated Council can discuss policy and possibly adjusting it. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES November 14, 2011 Page 5 of 6 Councilmember Siakel stated residents should be provided with information about payment options. Councilmember Woodruff stated that is covered in the water brochure. Mayor Lizee noted that Ann and Chad Raond, 6140 Pleasant Avenue, Shorewood are present this evening. Ms. Raymond noted she and her husband spoke with Mayor Lizee on November 12, 2011, at the "coffee with the mayor" about their desire to have watermain extended so they could have the opportunity to connect to city water. She explained when their well water was tested in 2009 the level of arsenic was just below 10; 10 or below is what the State classifies as safe for arsenic levels in municipal systems. Recent tests of their water show the level of arsenic has increased to 30. The effects from arsenic are not seen for a long time and include things such as liver cancer, kidney cancer, bladder cancer, and skin issues. She expressed concern that City residents who get their water from wells may not have all of the information about arsenic health issues. She commented she understood why property owners may not want to pay the cost for watermain extension or connection when they assume their well water is safe. Ms. Raymond stated she has spoken with residents in her neighborhood to see if they had any interest in having a feasibility study done to determine what it would cost to extend watermain into their neighborhood. She explained she spent two days gathering information and distributing flyers to 40 different homes. Unfortunately, only 8 people petitioned they would be interested in this. She noted she and her husband want to pursue this in the future. Mayor Lizee stated the City has published information about testing well water for arsenic in its newsletter and it has information about it on the City website. Ms. Raymond explained there are short-term ways to address safety issues with well water. But it can cost $2,000 a year to improve the safety of the well water through a water purification company. At that rate, it would take five years to pay for the cost of water connection fee. Director Brown asked Ms. Raymond if she found the information in the City's water brochure to be helpful and complete. Ms. Raymond responded the brochure is very complete. It talks about the approximate cost being $8,000 — $10,000 and it can be assessed over 10 years or paid at once through a private loan. It talks about concerns people should have with their well water. There is a section in the brochure that talks about it a roadway in front of your property is in need of reconstruction it's more cost effective for the City to extend watermain when it is reconstructed. Brown asked Ms. Raymond to forward any suggestions she may have on how to improve the brochure. Councilmember Woodruff asked if there is any information about where geographically arsenic levels may be a more serious problem. Council could then consider making those areas a priority for watermain extension. Director Brown explained there is a fine line between data privacy issues and information the City would seek. Property owners he has spoken with don't want people to know they have arsenic issues with their well water. The City does work with water testing companies that collect that type of data. One company recently told him that it could possibly provide spot profiles across the City of the testing that they have done of private well water with approximate locations. That would avoid violating any data privacy concerns. He will also conduct research into any broader water testing that has been done in the metropolitan area. Councilmember Woodruff stated he appreciates residents concern that their property value may decrease if people knew about arsenic issues in their well water. But, the City has a public responsibility to look CITY OF SHOREWOOD WORK SESSION MEETING MINUTES November 14, 2011 Page 6 of 6 into such issues on a broader scale. He then stated that maybe the City could have some data modeling done with data the City could have access to. He went on to state he would be more comfortable telling residents the City is extending watermain to solve a problem with arsenic. Councilmember Zerby recommended using the phrase "safe water plan" as a stamp on this project. He asked if the City has included the elimination of the cost to treat well water and the increase in property value into the benefits of connecting to city water. The benefit of having access to water when the power is out is another benefit that should be touted. Another benefit is to live in an area with fire hydrants and to have the ability to put a sprinkler in the house. Councilmember Siakel stated it sounds like this will be a grass roots effort. She then stated she likes Councilmember Zerby's idea of having a "safe water plan ". Councilmember Zerby explained that wellhead management should also address contaminants going the other way; into the water. Administrator Heck stated Staff will have the 20 -Year Water Plan updated for a February 20, 2012, Council work session. Staff will also research the Met Council water studies. 3. ADJOURN Zerby moved, Woodruff seconded, Adjourning the City Council Work Session of November 14, 2011, at 7:00 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED Christine Freeman, Recorder Q tMayor ATTEST n fleck, City A i hiiinistrator /Clerk