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CITY COUNCIL WORK SESSION January 6, 2014 <br />DRAFT <br /> 2 <br />people are happy with them, why force the water utility? Mr. Grochala explained that 46 <br />the assessments rolls for the Shenandoah project at one time did inc lude utilities with the 47 <br />understanding that the work could be taken out. Mayor Reinert noted that information 48 <br />about what people want is the best reason to have neighborhood meetings first, before any 49 <br />feasibility study is done. The council heard Mr. Grochala explain an option where the 50 <br />city decides to proceed utilizing street reconstruction bonds funded by property tax es 51 <br />(with a 5 year plan in place) and allows the neighborhood to consider adding utilities as a 52 <br />separate p roject. The resident of Hokah D rive asked if residents could have an individ ual 53 <br />option for utilities or not; he added that the demographics in that ne ighborhood are such 54 <br />that a certain level of assessment could actually push some people out. Mr. Grochala 55 <br />explained th at typically projects have included water but did not require hook up with a 56 <br />functioning well in place. City Engineer Wedel noted that, without a hook up and 57 <br />assessment, another funding source would have to be id entified for the bonds that 58 <br />financed the utility improvements. Community Development Director Grochala added 59 <br />that a financing policy is appropriate so people can understand the opt ions clearly. The 60 <br />resident of Hokah Drive added that the city should have a schedule of improvements that 61 <br />people can see and plan on; he thinks people expect some sort of assessment but the size 62 <br />has to be appropriate and workable. 63 <br /> 64 <br />Mr. Grochala noted that there are certain stipulations attached to funding types - i.e. street 65 <br />reconstruction bo nds count as part of the city’s debt ceiling, some bonding may require a 66 <br />certain level of improvement (curbs and gutters). He also reviewed information included 67 <br />in h is report on possible financial impacts of new bond issuance, with and without an 68 <br />assessment. Whatever process is ultimately undertaken would have to be phased in. A 69 <br />five year plan is needed. He suggests that March of this year would be a key time to look 70 <br />at starting either a feasibility study under the existing charter, a charter amendment or a 71 <br />reconstruction bond ing plan (doing that plan should probably be done anyway). 72 <br /> 73 <br />The Mayor suggested that the conversation has been started and that is importa nt. The 74 <br />first decision he think s is process. The council will contin ue working on the subject at 75 <br />work sessions and staff will provide more details for discussion including how to proceed 76 <br />with a five y ear plan and how to approach the Charter Commission. Council Members 77 <br />Rafferty and Stoesz indicated that they would attend the January Charter Commission 78 <br />meeting to give them a general idea of the council’s discussion. 79 <br /> 80 <br />2. NE Drainage Study Update – Community Development Director Grochala recalled 81 <br />that the city has been working with the watershed district on drainage in this NE area of 82 <br />the city. The council authorized a study that resulted in a plan for a storm sewer pipe 83 <br />along the future alignment of Otter Lake Road to Clearwater Creek for drainage. The 84 <br />plan would require permission to allow an increase in . The watershed is reviewing the 85 <br />proposal but has to include consideration of impacts on capacity. The work will continue 86 <br />and will incur some additional costs for engineering and modeling. 87 <br /> 88