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City Council Minutes 2000 09-06-00 (special cc) UNITED CITY OF YORKVILLE JOINT MEETING OF THE CITY COUNCIL & YBSD BOARD REPRESENTATIVES MINUTES SEPTEMBER 6, 2000 Attendees: Mayor Art Prochaska Alderman Rich Sticka Alderman Larry Kot Administrator, Jim Nanninga Brent Ekwinski, YBSD Board Ralph Pfister, YBSD Philippe Moreau, Deuchler Eric Schoeny, Deuchler Mayor Prochaska opened the meeting. Mr. Moreau, Engineer for YBSD outlined the sewer capacity of each line, referring to the plan that they had laid out on the table, which shows all current sewer lines. He stated that the 12" sewer line on Hydraulic is too small, and that 300 more acres could fill the Cannonball sewer to capacity. He also stated that any development to the south was tight. Mr. Pfister asked about the progress of the development of the Fox Highlands Subdivision. Mr. Nanninga stated there is a new group looking at taking over Unit 1 now, and they want to keep the golf course. Mr. Edmeier will finish the streets, etc., but this group has a golf pro interested in the development of the golf course. This sewer was to include service for Fox Highlands, Country Hills, Wildwood-Unit 1 &2, and only 177 homes in Coach Road Hills. Mr. Schoeny stated in regard to this sewer line,that the River Crossing is at capacity. Mr. Pfister stated that is why rates are going up. Mr. Moreau stated that things have changed based on what the City has done in the past few years, and wondered how can all of this be paid for. Mayor Prochaska stated that the City will be getting the $500,000 promised to YBSD. Hydraulic is different, we have to look at Coach Road Hills for expansion beyond the 177 homes, to extend Hydraulic. Mr. Moreau stated that 24" pipe will be difficult, it is shallow bedrock. If we can go gravity it should cost less than $1,000,000., but trenches will be deep with one pump station. With a siphon you get all kinds of problems. 1 Mayor Prochaska stated that it has to lift somewhere because of the River. Mr. Pfister stated it still has to be lifted again. Additionally, the problem with Hydraulic is there are so many utility there. Mr. Moreau stated without it, it causes surges. Mayor Prochaska stated that in regard to funding expansions, as a City we have other means to fund these type of things. The Alternate Revenue Bonds are being used to fund the Countryside Sewer extension of the Blackberry Creek sewer and this is based on sales tax revenue from Menards. We are waiting for Menards to break ground before we commit. These figures are based on a figure well below their estimate of sales. If we show this being covered by revenue, it does not become a general liability. Mr. Pfister stated that you still have to put away something for revenue bonds. Alderman Sticka stated that these are not just revenue bonds,they are alternate revenue bonds. Mayor Prochaska stated that they are not the same thing, these do not affect the general liability of the City. Alderman Sticka stated these do not affect the ability of the City to borrow. The sales tax revenue projected by the City does not come close to what has been estimated by Mendards. Mayor Prochaska stated that we should have more information on the Fox Highlands development within the next few weeks. Alderman Sticka stated that the City has promised development funds that are paid to the City to YBSD. Mayor Prochaska stated that with Hydraulic, we aren't putting anymore onto this sewer line unless we bring the south line down. Mr. Nanninga stated that if you consider Fox Highlands, if it finished out, with recapture from Coach Road Hills and others who would also pay this recapture...based on 300 permits at the $1800. portion of the connection fee it totals out to $986,000. Mayor Prochaska stated this amount money would come from the Fox Highlands extension of the sewer.. Mr. Pfister stated that the plant will reach capacity very soon. Mayor Prochaska stated that they know this is critical. 2 Mr. Moreau stated that with half a million gallons, YBSD is now 10% over and they don't want any excursions into the Fox River. The EPA would cut them off if this did happen. Mr. Pfister stated that the public hearing for renewal of their permit is coming soon, and the environmental groups are coming in to push for stricter limits. They are trying to slow or stop growth, and if they get their way, it will slow what we can put in the River. Mayor Prochaska stated that as a City we are looking at the timing issue, but at the same time we are working with developers to be sure the revenue is there to pay for these upgrades without increasing rates. Alderman Sticka asked how a new line is put in when the old line is still operating. Mr. Moreau stated you do by-pass pumping. Mr. Pfister stated that technology has come a long way. Mayor Prochaska stated that they are making developers aware that if they choose to develop outside of town they will have to run the lines. Mr. Moreau asked for a time-frame. Mr. Nanninga stated that they are waiting now to hear something, but should hear something in the next couple of months. Mayor Prochaksa stated they may wait for some funds to accumulate instead of putting in the sewer right away. Mr. Pfister stated that this time next year we should be under construction to expand, but capacity could be cut if the protesters get their way. Mr. Moreau stated that in regard to protests, if the plant is required to be more stringent, this expansion would be good for only 10 years instead of 20 years it is planned to cover. Mayor Prochaska stated that once the Fox Highlands line is in, it will free up some of the south line. Mr. Nanninga stated that this use would be used up, probably by the Coach Road Hills development. Mr. Pfister asked about infrastructure fees. Mayor Prochaska stated that we are getting dollars to build lines with developer participation and they are willing to do this because they want to be here. To the north we are working on proposals that would allow service to the Blackberry Creek Interceptor. 3 Mr. Moreau stated that Lift and Forcemains are very expensive, but these have to be done. The connection to the Cannonball line is necessary. The cost to reach route#34 is about 5 million dollars. Mayor Prochaska stated that the PNA Camp has been for sale off and on, and if it were sold and a developer came in, they would [pay for a 36" line to the plant, and developers to the north would have to share the cost for this sewer. Mr. Moreau stated that to pay for interceptors he felt the Infrastructure fee was best. Get the money up front and let it build up through the tax revenue of$2500. per acre, and reduce cost to developers. Mayor Prochaska stated that would be taking City money and mixing it with YBSD money. Developers want to know that if they pay the $2500. fee that they will have sewer. We can't tell them you have to wait for sewer to get there. Mr. Moreau stated there is benefit in getting the money up front, you don't have to worry about the economy, etc. Mr. Pfister asked how you can estimate developer costs. Mr. Schoeny stated that you could give the developer an option, either build the sewer or pay the fee. Mayor Prochaska stated that in some cases they may pay more than the $2500./acre fee to get sewer in, but when they are finished they will have sewer. Mr. Pfister stated it is a good plan as long as you get it done, but it is complicated. Mayor Prochaska stated that we are just billing them to run the line no matter what it costs. Mr. Nanninga stated that Dean Edmeier is paying about$3500. per acre for the sewer to service Fox Highlands. Everything is geared to what the cost is to develop. Why does YBSD want to take on this problem? The City has been doing it and it has been working. We've solved this problem. Mayor Prochaska stated that the City can make the developer put in whatever the plan calls for. Mr. Pfister stated that in a few years none of us will be here and he doesn't have a problem with this. If the City can get them built, fine. Mayor Prochaska stated that the answer is that when a developer comes in, we show them the plan, and if they are willing to build to the plan they won't have to pay the $2500. per acre. If not then they will be required to pay the $2500. per acre fee or whatever is required. 4 Mr. Pfister stated it is agreeable to him that as long as something is in place, whether it is always enforced or with options. Mayor Prochaska stated that this can be an intergovernmental agreement. If a developer is willing to do the best they can to meet the plan, then fine, plus any temporary means to get service, but not just a temporary line, or then they will pay the per acre fee. Mr. Nanninga stated then we would have a recapture fee in place. Mayor Prochaska stated an agreement can be worked out. Mr. Pfister stated he didn't like YBSD getting so involved, they are here only to serve as a utility and to mandate. Mayor Prochaska stated that the agreement will also state that so long as development is working with the City and costs will be covered back to the City. Those thing s will still be worked out. The development will run according to the plan or come up with the dollars. Mr. Pfister stated that when developers run sewer it is a big problem for YBSD. Mayor Prochaska stated he couldn't see any reason why these problems cannot be worked out. Mr. Pfister stated that when you have control of the payouts you have control. Mayor Prochaska stated this can be resolved too. Mr. Pfister stated that from a YBSD standpoint this has been good. Deuchler has corrected some mistakes and it has been good for us. Mr. Schoeny stated that taking temporary measures creates a big cost when permanent really needs to be done. Mr. Nanninga stated that Fox River Estates will require temporary measures, and that 36" sewer line. Mayor Prochaska stated that working with the Plan they have a good planning tool and can plot each segment being installed per the plan. I thing we can do that. Mr. Pfister stated that the $2500. fee would go up each year also. Alderman Sticka asked who would draft the agreement. Mayor Prochaska stated he would sit down and draft an agreement between the City of Yorkville and YBSD. 5 Mr. Pfister stated that he was also thinking of an agreement, but he felt that YBSD should also have an ordinance in place to collect a fee if the sewer isn't installed. Mayor Prochaska stated, but they still won't have the service. Mr. Nanninga stated that if they are given an option to install or pay, in the case of Fox River Estates they would pay and we would have to install the sewer. Mr. Moreau asked about recapture. If one develop installs the sewer does the next developer to tie on have to pay? Mr. Pfister stated that he felt we were all fortunate to be laying the ground work before this all hits. Mayor Prochaska stated that we are now at the point where we should put together a draft outlining requirements. An initial draft for review. Meeting adjourned at 8:35 PM Minutes by Sandy Marker 6